About seven basis points. Still an awful long way to go on that story. Vonnie in the u. S. , it is a positive session, slightly risk on. We have some guidelines for when the economy might start to reopen in new york city and in various economies around the country. Markets hanging onto that. Banks are the best performers in the s p 500, which is up 0. 9 right now. They are followed by Consumer Services and real estate. The yen is stronger today as well, off its highs now. 107. 20. T crude down at 12. 40. That continues to darken. The 10 year yield is now up to 65 basis points. Slightly risk on tone today. Talk a bit about what is happening in a little more detail. Italy, france, spain announcing plans to ease lockdown restrictions as the british Prime Minister pours a little cold water on the idea. Giuseppe conte in italy raising concerns about a possible second wave of infections that could trigger irreversible damage to the economy. Lets talk about the risks surrounding reopening and what it is going to mean for foreignexchange another asset classes. We are joined now by Vasileios Gkionakis, Banque Lombard Odier global head of fx strategy. In a number of countries around europe and the u. S. As well, starting to talk about reopening. What i am reading a lot more about in notes from analysts is the risk of a second wave of infection, possibly towards the autumn. If i want to position for that, if i want to get ahead of the curve because i believe we are potentially going to see a second round of cases climbing, how do i position for that . What is your strategy as i work through the summer . Vasileios i think in the main currency, the yen is by far your best bet is a clear hedge against a second wave. Is, i wouldnt say fairly obvious, but extremely likely we will get a second wave. Whats important is how strong that second wave is, and how it will be managed. The reality of the matter is that the economies will not be able to afford a second lockdown similar to the first one because the Economic Hardship that has already begun his massive, and having another round of it is simply devastating. Positioning and , youreort dollaryen talking about a currency which is extremely overvalued, and at the same time, should a second , and might be to concentrate further restrictions, you are still going to benefit from the potential downside in dollaryen. Guy ok. Lets pick up and think about the themes you are talking about there. One of the factors that has kept the story a little straight has been the efforts by the fed and the ecb and others to stabilize the dollar market. However, i am beginning to wonder whether or not the fed, the ecb, both of which are out this week, are actually get into the end of what they can achieve, at least in the short term. What are you expecting for both of those major Central Banks this week . Do they need to keep their powder dry for what is to come later . Vasileios i think as far as the fed is concerned, it is quite likely that in terms of actual implementation, they will keep the powder dry. What they are seeing right now is a definite and clear marketment in the money stress indicators, and dollar liquidity. Bases are nowhere near the level they were in march. The same thing applies to libor ois, a fairly accurate gauge of stress in the credit risk premium. In that sense, it wouldnt make much sense for them to actually act right now. Of course, given what they have done so far and where yields and rates are right now and have Balance Sheets have expanded, obviously the availability of using toolkits is getting more limited. I suspect that if things fail to recover, the next step for the fed would potentially be some yield Curve Management akin to what the bank of japan has been doing. In terms of the ecb, but in potentiallythe ecb, we may get some announcement in terms of fallen angels. Expand the pandemic purchase program, but i wouldnt expect that it is going to be that much of a dramatic decision for the ecb. Now is the time to really assess what has been put into place, and as you said, keep the powder dry for later on if things take a turn for the worse. Vonnie the japan announcement, the bank of japan lifting caps on Corporate Bonds and announcing it would buy as many government bonds as necessary, what does that do to the math, given that the bank of japan wasnt buying as many as it said it could anyway . Vasileios the way i see it is that the announcement by the bank of japan today was a pure and simple consequence of the fact that the japanese government is enacting fiscal stimulus. Therefore, youre going to have much higher debt issuance. Basically, what the boj wants to yieldso ensure that dont get stabilized to the upside because of increased positions. But lets be very careful about this. Ensurenouncement is to the stability of the yields and not put downward pressure on yields. The yield curve control of the boj has not yet changed. Vonnie if everybody is doing whatever it takes, and we are in a medically induced coma, the global economy, at what point do we get to see inflation again . Are we cycles away from that at this point . I think this is the milliondollar question. I will be very honest with you, i dont have the answer to this, largely because we have the precedent of what has been happening over the past 10 years , especially in the u. S. , with enormous pressure from the rates side and the Balance Sheet from the fed. The rollback and the massive not actually does lead to inflation. So therefore, there is an issue here which is over and above the issue we are currently facing with covid19 right now. Is still open, the question about the structural relationship between employment and inflation. I dont know, but it seems to have become much looser, which means these become less concerned for both the fiscal and monetary authorities right now, theyre pumping liquidity into the system. To be fairly blunt about this, right now, given the severity of the situation, it was not the time to be concerned about inflation. Right now it was the time to flatten the infection curve and ensure that we are not getting into an environment of market stresses. Deflationaryretty and seems to be getting more deflationary by the day. Lets talk about how you are playing the oil story via the fx channel. Do i play it in Something Like aussiecad, or through the emergingmarket currencies . Vasileios i will tell you, it is a very interesting question. I think that with emergingmarket currencies, one needs to be very careful, at least for a large chunk of them. Aside from the negative impacts of the low oil price or through negative input on their fiscal finances, you have to bear in mind that youve got markets on a hold, with the exception of asia. This late in the infection curve, potentially they have the worst ahead of them. You have to put that aside to the fact that in some of them, you have relatively poor health infrastructure. Is a very interesting one. From a shortterm, tactical perspective, it seems to be a bit overbought, but i think if we do get a replacement a between 77 and 88, it is a buy. High betahas a very to china. China is normalizing, whereas in canada, you have a country very much exposed in the u. S. The u. S. Is pretty much in lockdown mode and will definitely take longer to recover. Vonnie we have to leave it there, but thank you for your time. ,hat is Vasileios Gkionakis head of fx strategy at Banque Lombard Odier. Lets get a check on markets. Heres taylor riggs. Taylor you had more than one person gains on friday, so some of that optimism continues to filter in today. Markets off now about 25 oil markets off now 25 at 13 a barrel. I want to take a look at some of the effects that is having. This is retailed rush into the funds. Side. S the lefthand what that means is the price of the fund of u. S. Outcome of the largest oil etf, is managing to uso, the fund of largest oil etf, is managing to fall now. They had an announcement this morning that they are going to be rolling out a further across those contracts into the july, august, september contracts. They are trying to avoid some of the negative prices and volatility that we have seen in those front month contracts. Flipping up aboard flipping up the board again, you can see that price isnt filtering through within the Energy Stocks. We are seeing a divergence between Energy Prices and Energy Stocks. Mostly unchanged in the last four days or so, still up about 7 . You are seeing some of those Energy Stocks hold up a little bit better than some of the crude prices. Finally, i want to take a look at some individual stock movers that were falling. Carnival jumping after the wall street journal had a report early this morning that they were bailed out by the fed. They were able to receive much lower Interest Rates after the fed liquidity programs were announced than they were able to get from some of the hedge funds. Nvidia also up after completing another acquisition today. It is making them a major force in data centers. We know they have been a key area of strength for a lot of these chipmakers. Biomed is down after they were downgraded to market perform. There are some concerns by that analyst that the lower Sales Estimates dont include some of the negative covid19 impact. Finally, on an optimistic note, Quest Diagnostics upgraded at citi due to potential for a new lab testing program. Lab testing will benefit as we all take steps to continue to reopen the economies so that reopen the economies. So those are some of the names we are looking at. Vonnie up next, its up next, tough start to 2020. We will get more. This is bloomberg. Guy live from london, im guy johnson, with vonnie quinn in new york. This is the european close on bloomberg markets. Here with the first word news is ritika gupta. Ritika british Prime MinisterBoris Johnson is back at work after recovering from the coronavirus. In his first public statement, he urged people not to give up on social distancing measures. He said lifting the lockdown now would risk a second spike of infection that could do more damage. New york state could begin reopening as soon as may 15. Governor andrew cuomo has laid out a plan that starts with construction and manufacturing. He says it would probably begin upstate before moving to the new york city area. The state reported 367 deaths yesterday, the lowest in almost a month. In spain, officials are reporting a slight increase in the number of coronavirus deaths. The country has begun to gradually relax stringent lockdown measures after more than six weeks. Spanish officials will monitor 36,000 households, trying to lower the risk of a renewed outbreak. Spain has reported more than 43,000 deaths. New york oil plunged below 12 a barrel. Saudi arabia has already started cutting back on output, but investors are focused on the rising oil glut. There is concern it could lead to a rerun of last weeks crash. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im ritika gupta. This is bloomberg. Vonnie thank you. Its is being hampered id is being adidas hammered by the coronavirus outbreak, reporting its First Quarterly loss in nearly four years. More than 2 3 of Stores Remain closed. The ceo spoke with bloombergs anna edwards and matt miller earlier. We have got cash in our Balance Sheet close to 1. 5 billion, so we dont believe we will have a cash crunch going forward. The real question everyone is asking, how quick will be recovery come. I think china has been a good indicator in the First Quarter, particularly in the much of in the month of march. Willa cash standpoint, we have a difficult year. Matt youve told us previously in march that your Balance Sheet strongood as well, quite due to the work that you have been doing on it, and that you did on it last year. Is there any reason you would need to tap loan programs for help . We did that, as you saw, by the end of march. Billion inal 3 loans. The reason is very basic come of the world has shut down. Everything was closed in the month of april. We could not foresee that when we had the conversation in march. Right now we are seeing very slow opening, and that means we need a different Balance Sheet where the view is very different. I think what weve done is we have done the right precautionary measures to make sure that we have a healthy Balance Sheet. Anna you say things have changed in the last five weeks or so, but you had great insight into what was coming because of what you had seen in china already. What it be safe to say that you have been caught by surprise in terms of how bad things have become for europe and the Global Business . Kasper i think that would be a gross misstatement if you were to say that. Into the second week or third week of march, i dont think anyone would predict that the world would close down within three days. Then everybody would have reacted differently. But that the world would close down over three days, we didnt foresee, and i dont think anybody else foresees, so i dont you could put that on the shoulders of adidas. We have put a Balance Sheet in place will withstand the issues. Matt i have to disagree. I had a flight on march 15 that i knew the week previous i was going to have to cancel because i was afraid i wouldnt be able to get back to germany. You were still buying back shares at that point, and that has made a lot of germans pretty angry, that you are buying back shares into march, when we all knew the world was going to shut down. Then you are borrowing money from the government, from Government Programs in that month. That is a real concern for germans, and i think for shareholders as well. Kasper we stopped our Share Buyback on march 16, the week where the world closed down. So i think we have done as many percussion area measures, but our industry is hit many precautionary measures, but our industry is hit much harder because we are retail. When retail is, they get no revenue. But the world has been surprised about the speed and the rapid miss that the world the rapidness that the world closed down with. To try toyou going take on debt to repay that government loan . There had been suggestions that that might be in the plan . Kasper first and foremost, we need to get the operational business back on track. In online inowth the quarter, 55 in the month of march. Over time, we are looking at what alternative financial vehicles will allow us to pay the loan back. But the operational business has to be on track, and that is what we are working very hard on. The primary vehicle in the short term is the online business. Ceo Kasper Rorsted speaking on bloomberg a little whaler on. Adidas flat as we approach the close. Head into the end of play here in europe. This is bloomberg. Vonnie this is bloomberg markets. It is time for your latest Bloomberg Business flash. General motors is taking steps to preserve cash at a time when few people are buying cars. The automaker is suspending its Quarterly Dividend payments and put its Share Buyback program on hold. Gm is down 1. 2 right now. Apple is reportedly delaying mass production of its flagship iphones this year. According to dow jones, production of four new devices will be pushed back by about a month. The coronavirus pandemic has hurt global demand, plus distracted manufacturing in asia, where most of the iphones are made. Apple is sitting flat right now. Major retailers are calling on the states to adopt uniform reopening plans. Two trade groups representing companies such as walmart and best buy are sending a plane to governors that proposes allowing warehouses and Distribution Centers to open all at once instead of statebystate, and it outlines how retailers can maintain Public Safety once they reopen their doors. That is your latest Bloomberg Business flash. Checking u. S. Markets now, we are Holding Onto Gains here in the u. S. For the most part. The s p 500 back close to it session highs of 1. 2 . A bit higher today by Las Vegas Sands and mgm resorts international. These kinds of Companies Getting a little bit excited for investors on potential plans for reopening. Then you have some upgrades, the likes of Quest Diagnostics up on an upgrade at citi. Quick look at where we are as we had towards the european close. European stocks capping higher. Lufthansa and deutsches to doing and deutsche very well. We will talk about the german banks moment in a little more detail. Broadly today, a lowvolume session. Bear that in mind when you look at the numbers on the screen today. The close is next. This is bloomberg. Guy lets take a look at where European Equity markets are closing out. The gap first thing this morning not showing up on the screen. Decent gains augmented by the move higher as we came into the session. That is what the session looks like. We are up 1. 66 . It looks like a narrow range but does not capture the gap. In terms of what we have seen more broadly, the volume has been like. Volatility came down sharply this morning. It has climbed back this afternoon, but it will be a huge week for earnings and for the travel sector. Will talk about Deutsche Bank in just a moment. Deutsche bank one of the reasons we have seen the outperformance today from the dax. We have also seen lufthansa quite strong at the top end of the dax today. It is a critical week for lufthansa. We start to get an idea of the shape and form of some of the assistance from government will take. Deutsche bank and lufthansa on one end of the market. The cac 40 trading up 2. 3 . London a little bit of a laggard , oil has been trading at the bottom end of the market. You see the move lower in brent and wti. In terms of the sector breakdown, you can see that clearly in terms of the movement we have seen today from the different sectors. You have oil and gas at the bottom end of the market. Food and beverage down. Nestle has been week. Travel and leisure at the top end of the market has been doing well. Lufthansa strong performer. The banks have done well. I want to caveat this with a light volume story. The update on light volume makes you a little bit nervous. Individual stories were focusing on, we have touched on a few already. Heard about the concerns about the Balance Sheet. Bank upa, deutsche quite strongly. Adidas finishing down 1 . Airbus down as well. You heard the report talking about that business bleeding cash. We will get the numbers wednesday. The back end of the week you may airbus painting a grim picture. Newsi out with more good when it comes to the drug treatment for covid19. One of its arthritis drugs it is basically it is antiinflammatory and is being used reasonably well with some of the worst cases we are seeing with covid19 to reduce the inflammation those patients suffer. Sanofi up 2. 82 . Let me reinforce online volume. Vonnie here in the u. S. We are seeing a bounce. 28. 72 is the level on the s p 500. The yen is stronger of the bank of japan said to do what it takes including moving the caps on Corporate Bonds and increasing prices of government bonds should it be necessary, should be enough to send the yen higher. Down to 12. 22. The 10 year yield at 64 basis points. Lets look inside the s p 500. It is the banks that are higher today, up 4. 4 . We are getting another round of Small Business loans and that is helping the bank. They will reach 1 interest from each one of those loans. Consumer services are higher more than 3 . These plans to reopen that are popping up all over the country have the likes of Las Vegas Sands, norwegian cruise, mgm higher. Also department stores, nordstrom and kohls are up 8 and 9 apiece. Well. Diagnostics up as we are seeing a bounce today and it is holding through the morning session. Guy absolutely. Lets get back to the banks. A story inrtainly your. Deutsche bank out with numbers earlier, beating First Quarter profit expectations. The german lender still has words of caution. Results will come out on wednesday. Bloombergs german banking reporter joining us now from frankfurt. Deutsche is numbers generally look good. Here is my concern about the numbers. Unlike the u. S. Banks, provisioning looks reasonably like. 500 Million Euros for bad loans. That figure compared to what we saw out of the states looks low. How should i read this . Which side of the atlantic is right in terms of its approach to provision . Steve that is a very important question to ask. It is a question people will be asking when Deutsche Bank reports full details on wednesday. People will be asking about the credit portfolio, the quality, and so on, and whether the assumptions underlying this are justified or not. Unicredit came out with a prereleased last week and said they were at a 900 Million Euros. Much more than the 500 million now. They are assuming a 13 drop in gdp. Whatever Deutsche Bank is doing will have to be vetted very carefully. Vonnie does this let Deutsche Bank leapfrog its competitors . Steven leapfrog . The revenue increase their increasing is certainly something that has ive spoken with a few people and everyone was like the revenue increase is pretty cool. It does seem like a good result for Deutsche Bank. The Loan Loss Provisions may be on the mild side. We do not know the details. The trading boom of the First Quarter does not last of the second quarter, then this may prove shortlived. Deutscheof the things said today as it may fall below its ratio of 12. 5 . Storage a story today talking about some of the leverage ratios the banks in europe operate under. They are likely to get relief. The commissioner will be announcing a series of measures according to your reporting. What we know about what governments and what the authorities and regulators are doing to allow these banks to continue to land in the real economy and ultimately what is the cost of that . What Deutsche Bank has said is they expect to drop 12. 5 minimum dispersal of , which is an important regulatory metric. Vowed toepeatedly never go below that level. Now they have said they will go below that level, so it is an important change for the banks. Adamant orhave been have been forthcoming in reducing the capital climate for banks, at least temporary. Deutsche bank is making use of that. Youre also talking about positive figures. It does not seem to be that big of a problem. Below that threshold will only be temporary or modest. , thanturns to be more Deutsche Bank will have a problem. Vonnie overall, does Deutsche Bank need to make more job cuts . We are talking about it in the United States as being a separate thing from previous strategies because now working from home is allowing companies to see savings potential. You see that for Deutsche Bank . Steven i am pretty sure they are saving a lot of travel costs. People are staying at home. That will be good for them. This is working remarkably well. They have imposed a moratorium on firings at the moment. The reason being they do not want to exacerbate the social situation for staff. That may delay their job cut plan. However, they reaffirmed their cost cut targets for this year. Jobesting they believe the cuts will continue as planned despite the delay we are seeing right now. Vonnie we need to leave it there. Guy always appreciate it. Anyway, Stephen Arons joining us out of frankfurt. Lets stick with the banks. Earlier my colleague Francine Lacqua talked with Douglas Flint. She asked him about what he would say to investors who rely on income funds. Douglas it is very difficult. Those who are suffering most include those who are retired and have no ability to add to their pool of savings and their pool of savings is were enumerated in them much less than it used to be, whether it is interest rest Interest Rates with nothing on savings havent or dividends that been significantly curtailed in the current crisis. Having said that, businesses are in difficulty in terms of their cash flow and their funding have no choice but to cut the dividends. Companies that are seeking support from the public purse cannot pay money out to shareholders while seeking public support. For those companies that can pay a dividend, and we were very fortunate and pleased and it says something about a resilience, but we were pleased we were able to recommend to shareholders that we do pay our final dividends because we have the financial strength to do so. Companies that have the strength to do so should and those that put their Business Model and the jobs of their colleagues at risk should not pay dividends. They should make their Balance Sheet more resilient and they should prepare to resume dividends once they have the in the new world operating successfully. There will be a new way of operating for all businesses after this with lessons learned. It is part of the consequence of this crisis that those who relied upon their capital performing in the way they expected are going to be disappointed that it will be less than they hoped for in the short term. Hopefully the measures that were taken by government, Central Banks, and by the companies themselves means in the longterm it will be a better position for those who have their capital invested in the markets through pensions and simply their savings. It mean forat does consolidation in the Asset Management industry this year . Is everything on hold or does it accelerate the movement . Douglas i think everything will be on hold until there is greater clarity as to what will happen after covid is dealt with in terms of moving to the next stage. It would not be possible at this stage to do due diligence. It would not be possible to understand what the Business Model and the revenue cost model was going to be going forward. I am sure that when this is over across all businesses, but certainly in our sector, people will look at the benefits of diversification having a broader product range, having a greater geographic distribution, having greater scale to be able to absorb the cost space and a lower revenue model if markets stay at levels lower than they were before we went into this. Then i am sure there will be some consolidation that takes place in order to adjust Business Models. I think we are well ahead of that being possible to do or even be contemplated. Is to makeibility sure our workforce are well looked after and we are agile and the way we deal with them in terms of working from home and respecting the fact that many peoples family circumstances will be very different depending on what their partners are doing and whether they have children at home or whether they have parents they have to look after. We have to be thoughtful about managing at the moment. Chairmantandard life Douglas Flint on bloomberg. Time for the first word news with ritika gupta. Isika the white house finalizing expanded guidelines for the reopening of society. According to the Washington Post , that includes the face reopening of schools, churches, restaurants, and other businesses. The post says the proposal has led to sharp debates between Health Experts and other officials. Regulators are set to give bags their first round give banks their fourth round of capital relief. Tomorrow the European Commission will announce a series of measures designed to keep flowing to companies heard by the coronavirus outbreak. Italy plans to start easing lockdown restrictions a week from today. That sets up a ttest of european efforts to restart public life. Italys manufacturing sectors will be the first resume. The Prime Minister warns a second wave could cause irreversible damage. The mystery over kim jonguns health keeps growing. There is a report about a visit by a chinese medical team, and another says the north korean leaders armor chain armored train has been spotted near a compound. South korea maintains rumors that he may be dead or in poor health are untrue. 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 ritika gupta. This is bloomberg. Vonnie . Guy . Look wheretake a european markets are as we headed the break. We have seen a bit about performance going through today, certainly from the German Market , finishing up over 3 . It has rallied toward the end of the day. The ftse 100 falling a little bit. Today weve been talking about Deutsche Bank and lufthansa looking solid. Both of those stops prime drivers to the upside for the German Market, up 3. 1 . Boris johnson returning to the. Olitical front benches today the Prime Minister is back in action. Up atl see if he shows the briefing at 10 downing street. We will take that briefing on the cable show this evening on bloomberg radio, dap Digital Radio in the london area and around the world on all your bloomberg devices. That is at the top of the hour. This is bloomberg. Vonnie live from new york, i am vonnie quinn along with guy johnson in london. Lets check the latest headlines surrounding the coronavirus. Andrew cuomo say new york saw 337 new deaths in the last 24 hours. That is recorded total for the state of 17,303. Hospitalization is on the decline according to the governor but the state is still seeing 1000 hospitalizations per day. Governor cuomo saying he will extend regulations in many parts of the state, but some regions could on pause next month. Noteve also seen a who that there has been a concerning rise of covid19 and some asian countries. With more here is viviana hurtado. Viviana we begin in china with the Nature Research journal that looked at two hospitals in wuhan, china. Researchers found coronavirus particles linger. It is not clear if these particles cause infections. Vaccines continue to be in development. All of this while nations are planning easing of restrictions. In germany, some schools reopening on monday. Throughout may, gradual reopening. We are topped about hardhit spain, italy, austria, new york state. First, area opening specifically construction and manufacturing before coming south to the denser areas of new york city. In the prime in the united kingdom, Boris Johnson returned to work, he cautioned on opening too soon and said that could risk a new spike in infection. In indonesia, Health Officials say normal life will resume in july after an aggressive threepronged plan that includes covid19 testing as well as continuing strict social distancing measures. Overall, the Worldwide Global cases are nearing 3 million deaths, surpassing 207,000. Therapies continue to be tested. Final testing includes the use of a Rheumatoid Arthritis medicine on the sickest of patients. It is having antiinflammatory effects on some of the inflation in the lungs. There is some good data coming out of the trial. I will leave you with this. For the first time in eight weeks, electricity usage rising in the eu, including italy and germany. That is being interpreted as a sign that Economic Activity is starting to increase and some of the areas hardest hit by the covid19 pandemic. Guy . Guy some of the factories getting back to work, reopening. Thank, indeed. Lets get a Bloomberg Business flash and look at some of the biggest business stories in the news. Lets kick things off. Could have baked liquidity issues over those lawsuits in the United States. The German Company faces over 50,000 suits claiming the round up weedkiller cause cancer. The question is whether bayer will settle and for how much. There is speculation a settlement could cost around 10 billion. The ceo of airbus warning the plane is bleeding cash. Telling employees the Company Needs to quickly cut costs. Airbus customers are fighting to survive. They are unable to accept new aircraft. Airbusrival boeing is prepared to prices in jobs. That is the latest Bloomberg Business flash. This is bloomberg. 49. 50 daddy, i found you good job. Now im gonna stay here and you go hide. Watch your favorites from anywhere in the house with the Xfinity Stream app. Free with your xfinity service. Now any room can be a tv room. Stream live tv, on demand shows and movies, even your dvr recordings. Download the Xfinity Stream app today to stream the entertainment you love. Guy from london, im guy johnson with vonnie quinn in new york. This is european close on bloomberg markets. It is time for our stock of the hour. Taylor the u. S. Is planning to get back to business. Retail stores and casino operators are among the early winners. I am taking a look at Penn National gaming, one of the stocks receiving an upgrade by nomura. Over the year the story has not been good as casino operators have been hurt by a lack of visitors. Ura saying rural and casino operators could be opening as soon as may. He is lowering the price target from 60 a share from 69 a share. I want to flip up the board and take a look at people to plus plus rent costs. It will be difficult to get these Companies Back to the margins we had at the peak of 2019. They will be a little bit improved thanks to labor, marketing costs. A lot of the big expenses going to be last year. That is the ebida plus rent costs. All by 2021. Recovery back to about 80 of the margins to the peak of 2019 by 2022. If we flip up the board, we can see the positive Market Reaction we have had other casinos, some of the regional casinos like boyd seen as positive upside attractions. Well gettingrts as a boost on the reopening. Vonnie taylor riggs, thank you for that. Power on balance of Bloomberg Television and radio. Groups ian bremmer joining to talk about the u. S. China impact on relations. Right now we are up about 1. 25 for each of the major indices. This is bloomberg. David from new york to our tv and radio audiences worldwide, i am david westin and this is balance of power where the world of politics meets the world of business. We will start on the markets. The equity markets are up. We go to Abigail Doolittle to let us know what is going on. Abigail that is an important point you just made. Last week was the first down week in three weeks. The fact that we have the bulls back out suggests we may not see some sort of an action point in this sixweek rally out of the march lows, or what are currently march lows. We have the s p 500 up sharply. All of the sectors are higher led by the financials. Take a look at the s p financials up 1. 2 . That has to do with the risk that we have bonds lower. That pushes yields higher. That is good for the banks. You can take a look at the smallcap index outperforming up 3. 4