More positive. Barclays misses First Quarter estimate with 2. 1 million in credit impairments investors navigate unprecedented conditions caller what they are doing at the fed in terms of her majestys and the banks. Well watch two tsunamis hit at the same time. Investment banking provides a boost. Telling cnbc credit losses are manageable despite more pain to come this year will be more difficult than any of us anticipated. We are doing anything we can in anticipation of our risks and costs to preserve the capital that we can. Airbus blaming limited visibilityas 60 aircraft could not be delivered due to the outbreak not as bad as advertised shares of alphabet rally after the Google Parent Company said the slow down is easing, beating more pessimistic forecasts a very warm welcome to street signs this morning. Lets get a check on the european markets trading in the green. It has been a choppy session we saw the stoxx 600 slip below the flat line now. The ftse 100 up about 1 we have the dax and the german benchmark lagging. The cac 40 up and the ftse mib rallying just under 1 earnings sharply under focus weve heard a couple of companies under a raft in this segment. Some of the Health Care Companies are reporting strong reassuring numbers astrazeneca reassuring their guidance well go through those in more detail oil and gas bouncing strongly. Up about 2. 1 . That sector has been rallying steadily throughout the morning. Real estate also performing well up 1. 8 . Auto up 1. 8 as well. Banks had been the best performing they have slipped a little bit up about 1. 6 but still performing strongly. Food and bev down, health care down to the weakest part this morning. Lets get into the bank numbers for more detail. Standard charter has posted a 12 slide as the bank becomes the latest lender. Calling Global Sentiment extremely depressed but the Company Expects growth to move out of recession before the end of the year. It is seeing encouraging signs in the key chinese market. Flagging the impact of the rise and provisions on the bank the issues for us will be less about top line. It will be more about the credit impairments of how many businesses there are secondly, our businesses are particularly skued to northern asia some of the markets will come out of it earliest as well a slightly different profile to that than other sectors would have barclays up there 4. 7 . Strong results from the british bank missing the First Quarter fra forecast telling us these were unprecedented times for markets. Caller this is being met by a government response of incredible proportion. What the government and the uk and the u. S. Are doing in terms of monetary policy, bank of england, the fed, her majestys treasury, its extraordinary we are going to watch two tsunamis hadity at the same time to predict how those will play out is really tough. I think the challenge is really more a year or two from now. How will we all pay for this lets get out to steve. Pretty strong reaction what was encouraging about what we heard from the uk lenders this morning let me take a step back, if i may. Barclays was around 1. 75 p they got to around 80 p at their low and now they are back at 1 pound sterling the thing is that market had taken in a lot of the bad news anything that looked like the bank was taking affirmative action, there is only so much selfhelp barclays can do. From jeff staleys strategy and he has fought aggressively to say, look, we need Investment Banking to offset other parts of the business that has worked this time around the problem is, no matter how good barclays is about the trading income, the following is also true. The bank has given 3,600 Business Loans and granding 238,000 customers mortgage and loan payment holidays. They are not making anything on those customers. Theyve given 6 million customers plus currently paying no personal overdraft or personal banking charges 6 million. Barclays is doing as much selfhelp as they can. The market has taken them down from 175 up to 80 p. When youve got major banking customers such as British Airways, they may have no relationship as well huge sways of the economy taken out, when you are going to lose 25 of the ba work force youve got millions if not billions of pounds of impairments, banks cant just offset that and the mortgage holidays and the no overdraft fees, the fact that they are keeping credit longer. The good news is the selfhelp and the trading from the investment is working well at barclays the bad news is and i thought he was very graphic about it two tsunamis youve got to cope with two tsunamis ill go back to b. A. Again the ceo of that company has given up on imparting the furl owe scheme he said this isnt going to be months this is not third quarter. This will take us years to get back to 019 levels so barclays is doing all they can. No doubt they cant do anything about the underlying customers, custody and underlying ma lays it is fascinating that shares are Still Holding up so well this morning thank you. Speaking of the banking sector, Deutsche Bank has posted a First Quarter profit of 66 Million Euros. Also attributing a loss of 43 Million Euros as it recounts the loss of the restructuring program. They added they do not expect to pay a dividend for the Financial Year they say the lenders sweeping plan and restructuring approach is helping to navigate throught the virus. Caller it starts with the operational resilience and the way our people performed throughout the crisis and the clients. That has reflected itself. We had a very strong january and february carrying out the momentum the way we talked about. We were able to navigate through march quite well among other things based on our people on the front line and our really strong Risk Management during the period. Lets bring in our guest with more on these Deutsche Bank numbers. What stood out to me is relative to its peers and future credit losses can you weigh in for us there . Exactly thats a bit of a surprising a bit of a surprise, to be honest that Deutsche Bank has so much lower loan provisions than its peers. They were saying in another part of that interview that this was reflecting a robust part of the loan book. They are also saying they are expecting significant increase in credit losses in 2020 although not so much for the full year. It sounds quite optimistic for the second half. They are saying they are expecting the majority to be taking the first half of 2020 with the normalization later in the year it seems at least Deutsche Bank is expecting the Economic Activity to pick up. They are also thinking that effect of the Government Support program is actually really working in germany having said that, they are also very active player in the Government Support action. They are stressing that they are helping their clients and issuing loans in that support scheme, which is like 80 guaranteed by the state of kfw they are cautious about the outlook of 2020 saying they are expect lower revenues this year than last year because they continue derisking, so shedding assets in the relief unit but also because of the covid19 outbreak there is a considerable amount of uncertainty but they are also expecting that volatility will stay with the markets in 2020 and that might actually help them to generate more revenues that was what we were seeing for Deutsche Bank in the First Quarter that Investment Banking revenues wither really strong because of the market volatility if you compare to wall street peers that left them behind, but still, it was a Strong Quarter for the investment bank. The outlook is tentatively optimistic thank you for being with us. Another set of earnings out of hydro beating expectations. The company warned coronavirus is causing, quote, significant market uncertainty which is impacting global aluminum demand and pushing down prices. The ceo of hydrojoins us now thank you for being with us this morning. Your stock is performing quite well this morning after a better than expected ebit number. How much is that due to the cost of things . And how much was due to more resilient than inspected demand picture . I think the reactions we are seeing today and the result in general is almost entirely due to the cost that we have seen throughout the quarter we have, in the life of the significant demand decline which we see coming into q 2 to take significant measures especially the downstream. We have taken quite a lot of cost out to be prepared for the quarters to come in terms of what youve taken out, i know you are continuously reacting and closing some plants in recent weeks. How quickly can you restart the reaction and should you see the economy reopen and should you see the uptick in demand it varies a bit on where you sit in the supply chain. If you look at where you start, we havent taken out any capacity as our low position allows us to keep producing. Downstream, we can quickly take in and out capacity. Although we have fully curtailed expectations in spain and other european countries, we have started to empty back logs and fill some shortages. Unless we picked up and see customers start their factories again, then we will not be producing after this a great education section on your website which includes 75 of aluminum produced is in use as well. You also talk about your demographic issues which countries do you think in 2020 will bant twant the same at of product as they did in 2020 countries such as china, im real concerned about the demand for aluminum products. Thats the milliondollar question the range of expected oversupply is quite large in 2020 i guess all Market Players are expecting an oversupply in 2020 based on the demand picture. As we currently see it, there is being produced more aluminum as we need it there is more question on the supply side. Weve postponed some of our growth projects. In addition, we do see our peers responding to low price levels we are in a unfortunate situation with the low prices and they have deappreciated significantly against the dollar, which has moved us down compared to the industry in general, which makes us more resilient these days i make no apologies foregoing straight to your website there are fascinating items there as well. Including the auto industry. You talk about light weight without compromising on safety and that it is a greener metal the fact is that automotive is on life support. Is that area going to be quiet for the next couple of years i think how it is going to be in the next couple of years is under speculation. How it will be for the coming quarters is negative as a large aluminum producer, we are trying to move more to our markets which go a bit better. Foil and the can market, we have been able to compensate some of the volume auto looks more challenging in the months to come aluminum has the benefit there because the substitution rate is still high compared to other materials. At the end of the day, the Industry Needs to sell some cars for us to combat i want to ask you about brazil, which has emerged, you have significant operations there. The president there has come under criticism fordo downplayig the risk from the virus. In the world, and global, most countries have assigned the aluminum industry or parts of the industry as business critical to allow it to continue to operate brazil is no exception there we have been deemed as a critical business. The current political environment is allowing us to continue to produce. As any other parts of the world, we are taking significant measures to reduce the possibility of the spread of covid19 among our operations and employees. Pao, can i ask you a question that i would have asked before the coronavirus, that is about protectionism in the industry. A lot of people are talking about bringing their industry and Raw Materials back to closer markets or markets they are moral lied with. In this new world as well, given the lessons we are all learning with covid and the transmission, do you think your industry will see more protectionism and closer to home sourcing of product . That is a risk in the areas where that is possible of course in the global aluminum supply chain, there are certain elements that need to be produced in countries that are far away from home those are based at least in certain part of the world and in other parts we could see other parts of those movements especially the debate with regard to the downstream products being produced in china or europe has gained quite some momentum even before the covid19 situation regarding carbon taxes what we are happy to see in general is momentum towards more sustainable industry prevail in the current landscape. We do not see this being put on the backseat in a period where you are struggling with financials that should benefit producers of aluminum outside china, like ourselves with more local sourcing well leave it there, thank you for being with us. And thank you, steve for your contributions as well. Coming up, france and spain unveil 34r5 unveil plans to ease the lookdown measures. And coming up, airbus faces their greatest crisis. Well speak to the ceo at 10 45 cet, first on cnbc i came across sofi and it was the best decision of my life. I feel cared about as a member. Were getting a super competitive Interest Rate on our money. Were able to invest through the same exact platform. I really liked that they didnt have any hidden or extra fees. Sofi has brought me peace of mind. Truly thank you for helping me prepare for whatever the future has in store. So were working 24 7 toected maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. Welcome back to street signs. Volkswagen said it expects to make a profit this year despite a slide due to the pandemic. They reported an 81 slide in profit adding that business remains robust after it added measures to shore up liquidity. Shares are trading about 1. 7 higher daimler is expects mercedes to book higher this year despite the outbreak the full year earnings will fall adding that it faces a difficult Second Quarter that may include, a quote, prolonged down turn carrefour posted First Quarter sales of almost 19. 5 billion euros. Saying the crisiser in the fouryear plan iberdrola, the spanish renewable firm got a boost providing a 484 million euro capital gain speaking with us this morning, laying out how the company is laying out the model for the companys lockdown caller we are aware of the problem and in the condition for payment in those countries especially in those countries where people are able to pay most of those places they already paid by the bank and others by the check. They are not able to leave the house or pay their bills looking at spain more broadly, the country has unveiled a plan to lift its lockdown announcing a fourphase feature carrying from province to prove insurance. It has no date but is expected to carry out to june the infection rate and number of care beds will be considered this lies with the incubation rate being two weeks for the virus. Translator it is important we learn that each of these phases be the minimum of two weeks. The average period of the incubation of the virus. What does this mean . At best, each phase the transition to new normality. The french government also has begun its rules. Relaxing rules beginning may 11. Schools and some businesses will be allowed to reopen restaurants and cafes will remain closed until at least june the government wants to carry out at least 700,000 tests per week translator we will protect, test and isolate we will proceed aggressively and make different enterations between the regions. Progressively because we dont want to let the epidemic start again. All of us here prefer to avoid that after the confinement and then have to go through a general confinement once more. Still ahead, studies at tist olo gives a cautiously opmiicutok for the Second Quarter welcome back to street signs. Im Julianna Tatelbaum these are your headlines Standard Charter flags the recovery in asia telling cnbc the regional signs are positive caller those involved are in the eye of the storm but sort of seeing that there will be some light at the end of the tunnel over a period of time. North asian markets are more positive they went through earliest and will come out earliest barclays setting assign 2. 1 billion for credit impairments but says there have been a bounce in trading revenues as they face unprecedented conditions what the governments in the uk and u. S. Are doing. Bank of england, the fed, her majesties treasury, its just extraordinary. We are going to watch two tsunamis hit at the same time. Investment banking provides a boost. Telling cnbc credit losses are manageable despite more pain to come caller this year will be more difficult than anticipated. We are doing everything we can in an management of our risks and our costs to preserve our capital as best we can providing no guidance, the french euro space giant said 60 aircraft could not be delivered due to the outbreak. Well hear from the ceo in the next hour. Lets get a check for you on european markets it has been a choppy session we are now pairing back gains with the benchmark 600 dipping into negative territory moments ago. Now it is flat on the day. Youve got the cac 40 underperforming down about 20 basis points on the leader the ftse 100 up. Weve seen a strong bid for oil and gas names as well as basic resources. The dax holding up okay. The ftse mib holding down and pouring through a slew of earnings together. Listening to cfos and ceos on earnings calls and adjusting outlooks accordingly a lot of uncertainty this morning. That is reflected in the mixed picture we see looking at european banks in more detail. Stanley charter, Deutsche Bank and more seeing strong reaction. Barclay up nearly 5 Deutsche Bank receiving a warm welcome from investors up 1. 6 pulling that up about 1. 6 take a look at u. S. Futures. Today is a big day for the Federal Reserve. Looking forward to that meeting as well. Microsoft, facebook, master card looking forward to reporting we are looking to a positive start. The dow about a 200 start after a down turn to yesterdays forecast it broke a win and looks as though we will reclaim some of those losses also pointing to a stronger start. Coming back to things here in europe wpp also in focus. The company has reported a 3. 3 fall in First Quarter sales. Revenues tumble in march alone as the pandemic continues to impact the Advertising Industry. The worlds Biggest Advertising Agency expects to feel an impact but couldnt say by how much alphabet dropped over 41 million. The ceo said the usage of search, youtube and other apps were higher as urss search for more information on covid19 lets get to karen with more on these figures. No surprise theyve seen a spike in usage and search. How monday tiesable is the fact that more users are using their Search Engine . Thats the issue. Just because you are searching doesnt mean an add will be placed beside it they dont want that information next to the covid19 earnings were higher under the 6. 84 billion and above the 6. 66 billion. With revenue and l 61. 66 billion reported a huge amount from the Advertising Industry what you have in expectations were trading high on expectations in january. Those are very much taken down as we saw the hit to the virus initially, the reaction, we saw shares on a Conference Call and cost cutting outlined. After hours surged to 7 the ceo spoke about the usage of youtube and other apps along with that search comparisons made to super bowl, which is one of those events that the googling starts to take hold coronavirus search activities were four times greater than during the peak of super bowl. But mondetizing the issue. It was called the tale of two quarters quickly turned off because of covid19 looking to see if those comments would pour out mentioning that the abrupt slowdown in march and saying some early signs at this point that users are returning to commercial behavior, its not clear how returnable or monday tiesab tiesable that would be what youve got ahead, clearly the change patterns. The likes of Expedia Group that spends the like of 5 billion in advertising and could be 1 billion this year. Book. Com going down to about 1 billion this year. Looking at more of the Advertising Market than facebook it had been 31 of the add space spending last year it might see a steeper rebound when it comes to other areas, google cloud performed and youtube. Youtube up 33. 4 google cloud was up 32 . In terms of the cutbacks and this is key, you saw that hiring at google was lower. The pause of the unemployment trend in the United States elsewhere, that marketing trend would be cut by a half in the investment, youll see the cut backs and information for workers. A lot of numbers to look for facebook is a look at the advertising slow down too. Those numbers are staggering from the travel sector alone massive numbers we are talking about here on that note, facebook is the next Big Tech Company to deliver First Quarter earnings expected later today. We look ahead. When facebook reports earnings, investors will be focused on the impact of the coronavirus. Facebook already warned that while traffic to its apps was surging, revenue would be affected by covid19 well see how much is travel and Restaurant Brands pull back their ad spending. They expect to desell rite to 16 down from 25 Revenue Growth investors are also looking for guidance for the rest of the year on revenue as well as operating expenses another key area is how facebook plans to make money from all the ways people are spending time on its apps from revenue and calls and what is emerging from the markets. In the indias geoplatform announced last week. Sending that stock higher in after hours trading, investors are hoping that down side risk might be faced in to the stock cnbc business news, los angeles. Coming up, airbus gives no guidance as operating almost halves in the First Quarter. We break that down with the ceo after the break. And. Lets get started. music fades in hey hi welcome back to the program. The Federal Reserve will deliver the results from the latest meeting with rates continued to be on hold watch out for other policy moves including whether it will slow the rate of other asset purchases. Laying out some of the results of the cnbc fed survey we are going to push on and come back to whats happening in the uk British Airways is preparing to cut nearly 30 of its work force warning that passenger figures will not return to 2019 levels for several years due to the coronavirus outbreak iag, the parent company, says up to 12,000 jobs may be lost airbus has reported a 50 drop in profit as the industry has faced the gravest season it has known. Unmatching production to its demand lets get more from charlotte on airbus today airbus putting results out saying they cannot confirm the guidance as well as dividend they are struggling with Airlines Holding on to cash while all flights have been grounded in the pandemic crisis. Delaying and canceling some of the plane orders made so far here they are trying to manage this new environment in discussion with several of these. Airbus has cut cap ex by 700 million this year in 2020. It keeps mentioning that they have very limited visibility when it comes to the new environment and that will reassess in june their production format and has been announced to carry out until june they said in q1, there were 60 aircraft produced but could not be delivered this number could be even higher in q2. Again, this is the situation airbus is dealing with in terms of free cash flow, they were in 8 billion euros there at the end of 2019 to give you a little idea of the situation. Part of that figure was one of the settlement of 3. 6 billion euros. They have secured a credit line of 15 billion euros issuing 2. 5 billion bond that was issued previously. They are in discussions with airlines adapting to the shortterm shock. A lot of the airline ceo do not see business going back to normal within two or three years that airbus has to adapt to. We have seen shares up about 3. 5 on the french market. The share price reaction begs the question of how much of this was already baked in on the airline side of things, you are bringing us detail around klm move to access 12 billion in state aid how much can that aid or support for Airlines Support airbus and the other Aerospace Manufacturers here airbus had said before that they dont need state aid. They need the airlines to receive state aid because they are the customers and where the money comes from it is where we have heard from we have heard from the french Prime Minister saying they should remain a good customer. Receiving the loans from the french government. They have some Standing Orders that they should carry out and considering the opt mization of some of the fleet. We heard from this morning from air asia saying they are reviewing their order book with airbus this whole conversation hereof how far this will impact that was one of the voices that came in defense of Virgin Atlantic airbus with rolls royce saying this airline should be pursuing help because of Standing Orders with airbus. Stay with us. We are hoping bring in the ceo of airbus as well. Thank you for being with us this morning. Hi, good morning. We all saw reports over the weekend about a letter sent to employees saying we are bleeding cash which may threaten the existence of our company tell us directly what is going on and describe the environment at airbus right now . The purpose was to share with employees the fact and situation and face the new reality we are in we were hit by the gravest crisis we have ever had in Civil Aviation the purpose was to share with employees the situation and the need for action. You said this morning, you are hoping return to a cash neutral position by the end of the year you have planned to make some cuts where are you finding some cuts with respect to the environment . Are job cuts also on the table the situation has changed massively compared to the previous situation weve been working very hard with our customers one by one to understand their new situation to understand their ability and willingness to take delivery of planes Going Forward we have had the first wave of discussion with them as well as assess the new situation and readapted our Production Systems and rates to a new level this is roughly onethird below what it was before so that is a big change for the Large Company and large eco system that we are in. In the short term, we are adapted with the furlough and shortterm adaptations with the labor and the rate of employees. We have been like any other companies forced into the system where we have by far less people on sight and using the home office and working from home that is the very short term. Now, we are looking at to look at the midterm, longterm with them. Their plan and with data and more information to understand how the demand will recover and how deep and how long the crisis will be for aviation depending on the outcome of these studies, it may give a better understanding of the impact of our industry can you give us a little more details of these talks what is the mood and are you expecting more cancellations . The very short impact for the airline, they have lost the vast majority of traffic and revenues they have put planes on ground and have to deal with many complexities with their customers, passengers, employees and the workforce. They dont have the visibility on how to manage their new situation. It is very difficult to find a new agreement and new stability to go through the crisis and start to fly again afterwards. This is ongoing. We are seeing more about how to manage and we need those months to get the visibility to help us support them with their own return to service. As well, support ourselves in resizing appropriately it is too early. We need those two or three months to be able to resize and understand the new scheme, the new environment for aviation and there for fighting for rebounding, which is not the case today today, we are adapting to the situation. The french finance minister this morning came out and said the french state could help airbus if the right moment arrived to do so can you respond . We are talking with many governments, including the french government. We are in a crisis at a global scale. Impacting a lot of businesses, aviation is one of the sectors most impacted. The role of government is important. The First Support we need is to the airlines they need to be back to service for us to be able to maintain an activity of producing and delivering planes. There are many other expectations for governments we are very happy the french government like others are supporting us. We need support short term in the form of furloughs. This short unemployment systems are helpful to keep the workforce at the cost and on the financial side for the export credit agencies and support to the supply chain we have thousands of suppliers entering into the crisis with a position and we have a very difficult position somewhere later this year or next year it is very important there are schemes to support those Smaller Companies we absolutely need to be able to produce our planes. We cant deliver our plane with one part missing it doesnt exist we need the full eco system to be supported we need the support of government briefly, we have one more minute left. Boeing walked away with the tiup with its brazilian partner does that mean anything for you . We made a decision to enter a partnership with bombardier. Now the airbus a 320. That is a very strong product. We are very happy. Obviously, the information, the joint venture will not take place is important for us. It will give us more momentum for the a 320. We keep supporting the product we are very happy to see it has a lot of commercial success. It is a very good product for the future, in particular after the covid19 crisis. We are very happy we made the investment on the 320. Thank you for being with us this morning the ceo of airbus. Lets get you a quick check on u. S. Futures boeing will post First Quarter earnings later today the Ceo Dave Calhoun will be with us at 14 00 cet thats it for mejuan, lina tatelbaum. Worldwide exchange is coming up next. These days staying connected is more important than ever. So were working 24 7 to maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. The incredible bounce back on stocks. Futures are higher by more than 200 points but why are wall street and main street telling such a different story right now . The race for a vaccine picking up and the ceos on this network touting their progress on the fight against the virus is the Food Supply Chain at greater risk is President Trump telling meat processors to keep working