Underperforms. U. S. Energy tells cnbc he thinks the worst has passed i think with the rest of this conversation with opec was sim simply to do that. A bailout of the air sector fails to lift. Banks also underperform after jp morgan and wells fargo see their bottom lines hit the imf warns the Global Economy is facing the worst down turn saying at least the Financial System is in Better Health than it was in the 1930s. On the economic front, it makes a big difference there are lenders of last resort they are able to come in and show sufficient liquidity and play a major role in supporting funds and households we have an Important Oil report just crossing let me walk you through the latest it has said Global Oil Demand will fall by a record breaking amount because of the lockdowns due to covid19. It has brought mobility almost to a halt. Crude will drop an average of 9. 3 Million Barrels a day in 2020 that is a record demapped in april will fall by 29 Million Barrels a day to a level not seen in a quarter of a century the economy is under pressure in ways not seen since the Great Depression businesses are failing and unemployment is surging. The activity has fallen dramatically almost everywhere expecting a 4. 8 fall in Global Economic growth this year on the back of opec plus taking decision to cut by record amounts. Here is a quick look at what the oil majors are doing in the session. You can see in the red, theyve been peeling back. Roughly 4 off from bp shell we saw a reversal in that oil price yesterday. Down to the tune of about 10 . Fears of oil supply persist despite the record over cut from its partners u. S. Second told them the worst may be past for the u. S. Market. Caller think about what would have happened in the alternatives if there had been 10 million on the part of opec and opec plus. What if that number had been zero what would we be looking at today . It would be much lower than where we are i think the intend of the conversation with opec and the rest of the g20 countries was to stem the tide and the damage being done in the marketplace over the course of the last 30 days or so i know youve been closely scrutinizing this report there is no feasible agreement that could cut supply by enough to offset such losses today. I think youve hit on the exact key words. No feasible agreement on the planet could have got rid of that 29 Million Barrels oversupply in a short period of time the past weeks actions are a solid start. What hes saying d they are saying we think this is recovery at some stage in the second half of the year where the supply and balance could reverse if these cuts are more for longer as well. One thing i will point out is the devastating destruction of various oil product spending and investment that is going on as we speak especially if we look at brent very sustain wti, which we look at many times throughout the show wti is below 20 a barrel. The credit problems, the problems with the smaller players, devastating and jo ongoing. For him to say i think weve passed the worst, i think that is optimistic. The pain the industry was suffering before coronavirus was only exacerbated before this started. Many years ago, i spoke to an analyst who said if he could, hed be storing oil in his bathtub. It is almost the same this time around every facility that can store oil is doing the amount of oil in floating storage is 27 , 103. 1 Million Barrels in march what is the overhang once you get through this and demand starts to be restored, people are filling up their tanks and airlines are flying again, how quickly do those storagesing fall they dont. It is one of the big areas where the opec group are terrified the number of days of storage stay long at these levels. Thats what they are really worried about. As part of this agreement, they go on to say, china, india, south korea and u. S. Have agreed to fill up their storage anyone with capacity is filling up i live in the country side i have heating oil for our main heating source thats what we have to do. I was paying on average around 50 to 55 pence per liter i just paid 24 p if i had more storage, i would but i like the idea of a garden rather than a storage source the thing i will say, there is the ultimate storage, we all know what that is, dont get it out of the ground. Leave it in the ground longer. Thats what is going to happen, storage will fill up thats a good point taking you to what we are seeing in the markets here in new york. We bounced off some of the lows a short time ago we are still trading very weak in the session if you look at the dax down 1. 7 1. 6 down for the French Market those chances for the uk market and italian stocks it is a weak session investors believe well suffer the biggest down turn since the Great Depression the u. S. Bank season kicks off it is around the provisioning that could hit the sector down the track with small or media sized businesses, consumers. That picture is knocking the european banks from their perch. San paulo has gained 3 . Barclays is down 3. 6 as well. 3 3. 8 for unicredit. President trump has come under attack for halting funding to the w. H. O china has urged the government to fulfill its effort. Germanys foreign minister weighed in saying it was not appropriate to play the blame game adding, quote, the virus knows no boarders. He called on investors to strength ent strengthen the un. He began to criticize the Global Health body last week repeatedly accusing it of being china centric. U. S. Is by far the biggest donor of the w. H. O. Giving it more than 400 million a year that is on hold saying they were too slow to react. The delays the w. H. O. Experienced cost valuable time, tremendous amounts of time more time was lost to get a team of International Experts in to examine the outbreak, which we wanted to do, which they should have done. The inability of the w. H. O. To obtain virus samples to this date has deprived the scientific community. President trump who has been arguing with the governors about who should lift the coronavirus shutdown he has said he will work with local officials to lyft restrictions, some possibly before the first of may. He added he is fine with governors making their own decisions a day after saying his authority is total well take a quick look at comments from the german finance minister, i believe. Well come back to that. I want to get out to goff first. The w. H. O. Criticism it stood out to me when i asked them early on, do they support travel restrictions, they said no they said they believed people would try to get to where they wanted no matter what. Perhaps there is a point of criticism around the way w. H. O. Has handled crisis but whether now is the right time to criticize the decision or down the track. You are right the issue of the timing. Do you stop funding the w. H. O. In the height of the crisis is the question mark here lets go back to what President Trump is alleging. I know the president is often accused of shooting from the hip but a rerun of the tape on the facts actually suggests that maybe the w. H. O. Was slow in taking on board the magnitude of the crisis that was about to unfold perhaps as President Trump argues it took too many statements from the Chinese Government at face value and didnt dig deeper. Way back in early january, when the Chinese Government was reporting preliminary findings of their own investigations and suggesting there was limited likelihood of humantohuman transmission, the government took that, didnt go any further. Ultimately, we didnt see the w. H. O. With a Global Pandemic until march. At that time, air travel meant this awful disease made its way around the world i think one of the issues as we look back over how the Chinese Government behaved and how the w. H. O. Behaved one of the key issues would be why did the Chinese Government encirc encircle hubei and woo hauhan wt was telling the rest of the world it was wrong that is something the president is unhappy about we know the w. H. O. Works in the interest of the rest of the world or it doesnt. There are questions that the w. H. O. Has refused to cooperate with taiwan who we know china has a beef with historically i think the leadership of w. H. O. Should be questioned in detail when we come through this. But perhaps as the germans and chinese are suggesting, it is difficult timing to remove all of the funding which still has an Important Role in many emerging countries around the world. Weve seen the president using blame game to his advantage. We are all counting down to that election day in november seeing over 200 people dying in one day alone that this could be a crisis that would test the president whether his handling of the health care system, to roll back obama care this could all come back to bite him when voters head to the poles later this year. I agree with you. There is that potential. But i think there is also a willingness of the populations of america, uk, to give their governments a certain amount of benefit the doubt. There are countries that clearly seem to have acted more quickly. South korea, taiwan, they use energy very efficiently. New zealand, countries that do appear to have acted fast and stemmed the spread and used testing very efficiently when you come to the larger developed countries, they do react and are playing catch up does this change peoples opinion of President Trump i doubt it people tend to be very deep seated in their political views. Will there be a swing of those who dont feel he acted appropriately . Maybe. At this point, there is a sense. I feel it in the uk, i see it in the United States while we are in the height of this crisis, it is more important for people to comply with government requests and with social distancing that is required. Do what is necessary to slow down the spread of this disease and perhaps start asking more serious questions about how efficient governments will be in dealing with it later, karen let me take you to what we are hearing out of germany the meeting there that the government will extend the coronavirus restrictions until the third of may that is a similar time line to that of italy. The German Economy minister speaking saying the economy entered recession in march and is expected to continue until midyear. We look around, the risk of the down turn because of coronavirus, that is the time frame, midyear the industrial activity likely to collapse in march and the Second Quarter there was a line out from the labor Office Around the 13th of april why 17,000 companies had applied for shortterm work by that date. They had applied for that help as the lockdown had continued. This is a short time work scheme to assist those hit by covid19. Coming up on the show, well take a deep dive into the covid19 pandemic. Stick around for that conversation matters. Matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] the uks offer has warned the country could face its deepest recession due to the coronavirus. Steve has been reporting the detail we are now talking double digit declines no one would have expected that when we started out 2020 no. They are devastating numbers they are saying, this is not an economic forecast. It is a reference scenario what we believe could happen. They believe without Government Intervention in action, there would have been a much more devastating effect uk economy could fall 35 in the Second Quarter 35 . If restrictions last, that could rise to 273 billion this year in 2020 2021 the deficit could go up to 14 gdp. They just got it down to 2 . Government spending up by more than 88 billion pounds. Unemployment rate could hit 10 . 2 million plus people. The gdp for the whole of 2020 could fall 13 the government will make a review of the lockdown requirements they said yesterday, it pains to say, yes there is more economic woes ahead and also saying it is not a tradeoff with the economy and health concerns. There must come a time when the government must think there are reasonable sectors that can get back to work that is similar modelling around spain and other parts of europe. I like that good news first and bad news to follow lets look at the imf issuing warnings saying the Global Economy will likely suffer the worst recession since the Great Depression and expected the Global Economy to shrink by 3 the contraction in the u. S. Is forecast to be almost twice as sharp with the gdp set to fall by 9 and 7. 5 respectively. Poul thomsen will join us at 12 cet scientists warn against winter and warn that social distancing may need to be necessary until 2022 so countrys Health Services arent overwhelmed. Joining us now, the professor of economics atlondon Business School i want to ask you about the decisions governments are being forced to make because testing is still not significant we really dont know if anything about immunity is it too early to be talking about this yet welcome, everybody. You are exactly right. First of all, if we do not have an effective strategy in place, the virus is likely to spread again and likely, well start all over again, what we are doing now. The first thing is to gather information. The only way to gather information is to test the testing has an important value allowing the information to design proper exit strategy we need to know what is the stop of the infection what is the rate of people that have been infected and in different regions. We need to know how it acted across age, sex, working sector. How many people have been infected that are a ssymptomati. It is like flipping a coin i wanted to pick up on that and take you forward there is a very strong debate taking place about whether the effects of the lockdown and social distancing on the economy is worth the cost. Youll have seen this debate should we perhaps accept there will be further fatalities from coronavirus but if we dont begin to open up the economy, the longer term consequences on Mental Health and suicide rates could be larger. These are political decisions. What i like to say, there is a chance to reopen the economy and at the same time contain the virus. The way to do that is to start collecting information the way you do that is testing and not releasing it you do extensive testing to represent the population recording that this is feasible, easy and cost effective. Once we do that, well have more information to design proper strategy to keep it flattened at the same time, you dont get 35 of the increase in gdp so im not anybody to put cost in what it means. However, there is two things the point is that you need to do testing. Countries that have more testing capacities like germany, for example, they are doing much better than other countries. Countries like south korea that have an appropriate testing facility and ability, they dont need to have that rate down. Because of people dying. These things are a tradeoff that appear strong when information is not collecting and when testing isdown we need to work around it and act fast i want to ask you as we learn that American Airlines are going to get Financial Support from the government, there will be those that say, look, there is a sector that over the years use 96 of its own cash flow to buy its own shares to flatter its etf, they dont deserve a bailout. Is there a simple way to figure out which need to get the bailout. We know well all bepicking up the tab for this i dont think there is a simple way i think destroying companies that are Huge Companies will have a huge cost rebuilding companies is extremely costly i think the best way at the moment is to try to minimize the time in which we need to subsidize companies so we can restart as fast as possible. Then, the sectors that well see more or not, these are eventually political decision. Well leave it there. Thank you for weighing in today, andrea professor at london Business School coming up, President Trump cut u. S. Funding to the w. H. O. After a war of words on the body more when we come back welcome to street signs. These are your headlines china and germany hit back at President Trump calling on the u. S. Leader to fulfill on his obligations and invest more to the w. H. O. And invest funding after halting funding to the agency the World Health Organization was always very china centric. You cant do that. Not right. The German Government extends the lockdown to the third of may we have crude prices sinking deeper into the red as the agency warns of a record drop of demand and says the cuts cannot offset the challenges. A 25 billion bailout fails to affect sectors as they talk about rescue packages. We are about an hour and a half into the trading day here in europe. A quick look at the markets that have started at the back foot. Giving back yesterdays gains. In the red as to the other markets. We did see weakness. The loss on the ftse about 1. 5 yesterday on the French Market now down 1. 3 today and more losses to the italian stock market the third negative session in terms of hitting the Foreign Exchange versus the dollar the european currency also reversing down more watching for reaction later today on data and retail sales that might move support at this point. You can see it is fairly risk off session. Some of the green we expect to translate this morning also taking stock of what is being built as the greatest down turn since the Great Depression. We saw that report from jp morgan and wells fargo about provisions they are now taking in provisions of credit this year you can see 3. 7 top of the charts as it peels back loss of arrivals and at the bottom of the chart barclays sliding 3. 2 to the tune of 2. 8 . To the airlines. American, delta, united and others applied for a share of 25 billion in payroll grants which would require companies not to let employees go. You can see they are all sliding this morning french finance minister said the government will decide on a possible support package for Air France Klm they are in talks of receiving several billion euros of state emergency funding. A new partnership has emerged in a race to find a vaccine for covid19 sanofi and glasko have teamed up both companies are trading higher on the market glass cosmith klein said the partnership could see more by next year. We are seeing two leaders both bringing proven pandemic technologies and scale for the vaccine against covid19 a lot of work to do. We also bring significant manufacturing capacity if we are successful that we are hoping to get to hundreds of millions of doses by the end of next year but a lot of work to do were sure the world could need another vaccine considering the state of demand. We have a flash coming saying huawei, the mobil phone company and producer of the equipment, is making an error here and i hope it will think again. What we are seeing, some fairly strong comments about the involvement of huawei and the buildout of 5g they called on the participation of the Chinese Company in an effort to try to shore up supply to shore up equipment without driving up the cost for many of those tell he c cost of tele con companies these are the same companies now dealing with coronavirus it has been increased traffic so the comments are quite interesting from this committee. A quick look at how u. S. Futures are shaping up you can see the dow suggesting a slump at the start of the session which would be reversal. Tech played significant gain in the roles in the u. S. Markets as investors would pick up nicely amazon at alltime highs better commentary around iphone sales in china boosting apple stock. We are seeing weakness in oil price which will weigh what we are seeing from the futures from the states you will see 1. 2 for brent. And wti shedding 10 on those demand fears coming up, more u. S. Banks release earnings as more warn over severe resession. [ ] think you need to buy expensive skincare products to see dramatic results . Try olay skin care. Just one jar of microsculpting cream has the hydrating power of 5 jars of a prestige cream, glakol24. Provides visibly smoother, brighter skin. For dramatic skincare results, try olay. And now receive 25 off your purchase at olay. Com s brand power. Helping you buy better. Glaxosmithkline glaxosmithkline glaxosmithklineaz representatives from the chinese, german and uk government have criticized President Trump for cutting funding to the World Health Organization i question whether this is about handling blame for the pandemic state side and what do you think the president will be facing come november when the poles will be front and center right well a lot of critics are saying the president is trying to shift blame and that other countries that got the warning at the same time the United States did did much better because of their reaction the president has been under fire for how he handled the crisis and if he acted quickly enough now hes saying the World Health Organization mismanaged the crisis, did not warn people enough and there was a coverup of the devastating effects of covid19 as a result, he is putting on hold millions of dollars tens of millions that the United States gives the World Health Organization to get the science done, on top of that, there is a lot more money given for special projects all of it now on hold. Back to you. Thank you for the update. Bank of america, sciti and goldman to report today. Increasing loan provisions jp morgan set net income sank 69 adding that it was bracing for, quote, fairly severe recession. Wells fargo reported an 89 drop in profit. A warning that Economic Conditions in the u. S. Could continue to deteriorate. Caller there are some things that could happen and what might happen after an elongated trough we all do our best to capture them in real time but if the economy is going to remain closed into the summer, through the summer, things could get worse. Jpmorgan jamie dimon saying many could not return to work until august whole models that have dealt with gdp down 40 . That is one part they have also never dealt with a government doing unemployment where it looks like 30 to 40 on unemployment have higher income than before they went on unemployment so what does that look like for credit cards and more. The company is in good shape well serve our clients but it is happening as we speak lets bring in nick ford, premier hilton u. S. Fund nick, i want to ask you about what matters to stocks at this point. Weve seen strong moves yesterday, it felt as though investors wither not happy with the bad news and that it might be a grim picture. Caller i think youve got to look at what analysts are doing with the forecast. We are already seeing cuts 20 is the guess for 2021. The question is the outlook for credit quality and guidance. So far, weve only had a relatively short amount of time as far as the impact we have to look at how severe is unemployment going to get . There is a strong link between unemployment and negative impact on the card business, which is a key part of the models for a lot of these big banks as a rule of thumb, chargeoffs drop by about 75 . I think well see more provision for credit losses which will encourage the significant expose your which would be expected due to the down turn which would raise the thought for losses and credit charges going into a difficult period one thing i would like to say and this is quite a big Silver Lining to the cloud. The banks are the transmissions forgetting money to people in difficulty it is a huge opportunity for banking to come out of this as the good guys, the heroes if they can work through the problems with the sba and getting money to the Small Businesses and consumers and perhaps be more for giving on forbearance and for giving late loans, theyll come out of this looking good it is a tough patch at the moment i want to point out around the trading we saw yesterday 32 increase on revenue does this remain a factor for some of the big banks. Will those trading numbers be depressed over weeks and months because of the markets caller is depends on what happens with the vix jpmorgan is trading up they seem to be having good trends and their fixed income. That will bode well for goldman sach that will be a good offset to potential degradation of loan portfolios they are less exposed but do have some commercial loan portfolios that will provide a niceo offse. One of the reasons we are seeing the banks hold up quite well one thing you have to look at in the u. S. Is how much more difficult it will be for smaller banks. Smaller banks are exposed to the mom and pop businesses the restaurant owners, the bar owners where Profit Margins are low and there are risk of default. That is one area in the u. S. Banking system im slightly more concerned about. Nick, is the u. S. Worth its premium whether it be on the russell, the s p or other Large Industries u. S. Stocks trade at a significant premium at this cycle a better place to cope at that premium or should that erode because of action on the other side of the atlantic caller that is a good question the u. S. Market deserves to trade at a premium when you look at the composite of the s p 500, there is a very high level of companies with high Profit Margins and strong growth that are dominant in their industry im talking about facebook, google, apple and so forth there arent really Many Companies that have such strong Profit Margins to compare the u. S. Market with other markets just on the back of the loan misses the point that they have had more category Killer Companies with stronger outlooks having said that, one area i will look at one area i talk about a lot is the fact that some of these Big Companies do rely heavily on advertising for those Business Models if Corporate America tries to cut expenses on what they use on advertising and potentially technology as well that is going to feed through to the Business Models of some of these Large Companies that are largely advertising. We know about the angel sachlon tendencies and aggression in m a. What stage of the cycle does that start to show itself as well is it just too early to talk about that though . Caller not at all. Thats a great question. First of all, it is very top end. The Big Companies in the top five apple and so forth, big cash positions to make acquisitions, so they will be opportunitistic. On the other end, even the russell 2000s, youve got companies that compare to private companies. Very good access to capital and raising money for acquisitions i think what inkreegs me certainly in the Smaller Company space, there are a lot of companies that grow by acquisition. Theyll be in a good position to take advantage of the difficulties of some of these smaller restaurant owners. Companies some is of them are getting into some of the hotel operators. Theyll be in position to acquire some of the companies that are struggling at attractive prices. Thank you, nick prem y a little about what is ahead on wall street. The data investors will have to get through and nearly three decades of retail sales. Futures have been weaker on wall street ahead of that reading thats it for today. Worldwide exchange is up next. Thanks for watching. It is an understatement to say that i was extremely worried. I was overwhelmed. And i didnt know where to begin. 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Can your internet do that . Breaking news, stocks trying to extend yesterdays gains as one major index caps its longest winning streak since early february as President Trump announces some state economies may reopen for business within the next three weeks and call it the countrys largest coronavirus Antibody Test to date. What one Sports League is doing to get ready for an eventful opening day at the ballpark. It is wednesday, april