Earnings season even as Goldman Sachs warns of a 35 g. D. P. Slump. And jpmorgan is the first u. S. Bank to report. Wells fargo comes next. Dont miss our interview with the c. F. O. Later on today. Those earnings come out before the u. S. Bell this morning. And global coronavirus cases approach the 2 million mark with 119,000 people dead. France extends its lockdown. The u. K. Is expected to follow suit this week. Were just under an hour away from the start of cash equity trading in europe. Lets take a look at futures this morning. We had the u. S. Trade down yesterday. India is doing quite well or did quite well overnight. European futures up more than 1 across the board. Ftse and euro stocks, dak futures this morning. Dax futures this morning. Here h your top stories this morning. President trump says he has total authority to order states to relax social distancing and reopening their economies. A number of u. S. State governors say they will form regional alliances to coordinate the opening of schools and businesses when the coronavirus outbreak subsides. Californias gavin newsom said governors will be guided by facts and science but the president said he is pressing head with reopening plans. President trump consult with my team and top experts and were close to compleeth a plan to reopen our country, hopefully ahead of schedule. Matt macron said france was underprepared before the coronavirus pandemic hit. The country extended its lockdown with a gradual reopening now planned for may 11. The french president said by that date the country will be able to test all patients with symptoms. The vice chairman of the fed said the Central Banks can keep the u. S. Out of a deflationary trap. The Federal Reserve will use tools until it is confident the economy has recovered from the coronavirus shock. Almost 17 Million People have filed for Unemployment Benefits the u. S. In the last Ernie Sanders has endorsed joe biden for u. S. President and trying to get his supporters to back the nominee. He called on all political affiliations to work to defeat donald trump. The timing was less than a week after sanders dropped out of the race. Bloomberg powered by more than 2700 journalists and analysts in more than 120 countries. Global stocks pushed higher day ahead of one of the most unsettling Earnings Seasons of record. Lets get to the markets with our bloomberg managing et or the in singapore. Do you think the risk on optimism is all about investors who think they have an edge or people who think earnings season ill be as bad as expected . I think that earnings season will be highly uncertain. It will be very hard to take a clear signal away from it. It is a momentous earnings season as many people are talking about but that doesnt mean it will be easy to understand. I think there will be so little clarity. Several phases of evolution about how we interpret it. We got this incredible stimulus package. I think they have gone much further than many of us including myself absolutely thought they would do. I think there has been a fundamental improvement. I still dont think it is enough to have equities from having another severe down movement in the come month. They have already also limited the risk in terms of minimizing the risk of a complete financial meltdown on workers and companies. That hink they have does not mean it is starting in the next week or so, we might get part of the way through earnings season first. Matt is this still a bear market . Have we just seen bear market rally or is the worst behind us . Is the bottom behind us . I personally dont think that the bottom is in. But i guess it is very hard to be to have high conviction. Personally i think well go much lower again. I think it is easy to have conviction. Well at least have another severe down move and down towards that level again. I think it is absolutely a bear market rally. Not a particularly strong one. It is an exceptionally fast one. I will note in october 2008 in the spivers less than 48 hours there was a 24 rally in the s p 500 before stock markets collapsed much further again. This has been similarly powerful. However, it is quite normal tandard trade or benchmark the classic 6. 1 . 68. 1 . We felt we might get up to 2800, 2900, in the s p 500. We did not think we would get there that quickly. Matt you were questioned today on the blog. There was a real focus on the blog of emerging asia. Your question of the day surrounds that. You want a discussion on whether or not e. M. Assets can do better this time. What are you hearing . Dominated arch was by a lot of Development Market assets. Many were struggling with what was going to happen with oil, the dollar, the s p 500. We tried to do a lot of focus last week and this week. I think what is unique about emerging markets is that many merging markets will trade a little bit differently as we proceed through. In 2008, emerging markets was really just one trade. It was all just related to the credit super cycle and the china commodities super cycle. When that blew up, all merging markets sold off rapidly as one. After the initial shock of march, merging markets will differentiate much more about how their external balances look. Matt thanks very much. Great talking to you. Bloombergs managing editor coming to us out of singapore. Reach out toous with your take on merging markets today. Up next, well talk about inflation expectations. How rust u. S. Prices can avoid a vicious cycle of decline despite the economic wovers the coronavirus. Well bring you that interview next. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open now. Markets ittle under 50 away from cash equity trading. Futures are up across the board in europe. The fed has launched a number of u. S. Programs to support the u. S. Economy during the pandemic which includes as much as 2. 3 trillion in loans and slashing Interest Rateses to nearly zero. Speaking to bloomberg, the Federal Reserves vice chairman said the central bank has the tools needed to keep the u. S. Out of deflationary trap even as the coronavirus deals a severe blow. Im very confident that as the economy recovers from this hit and begins to return and recover that we at the appropriate time will be able to unwind these programs. You know, tom, and mike, there is nothing fundamentally wrong with the u. S. Economy. It came into the year in a very strong position in terms of employment and growth and Financial Market and im confident we can get back there and at the appropriate time we can scale back these programs. Let me follow up on that and sk you this. Probably billions of loans out near zero for years, are you ever going to be able to raise Interest Rates again . Right now were not doing yield curve control but we indicated in our march statement a were going to keep rate where is they are which is basically very close to zero until the economy is on track to achieve the maximum employment and price stabilities. The path of the economy is going to dictate ultimately the path of rates. In terms of our programs, these facilities will be in place during the period when the economy is being impacted by the virus. And the term sheets for these programs, youll see that the facilities are due to stop lending in september of this year. Obviously we can extend that as needed. Those loans will be in place and have a term of several years and at the appropriate time, i do not think that will be a challenge to us when it is appropriate. But again, that is a long way down the road. We think where rates are now is where they need to be given where the economy is. Tom mentioned the notes he is getting from people asking questions and the one i get most often is why did you feel it necessary to go into buying junk . Well, we have put in place no fewer than nine facilities over the past several weeks and first and foremost, our focus on these facilities is making sure that credit is flowing to businesses and households and obviously were in the commercial paper auto , well be financing and loans and credit cards partnering with banks to provide financing to businesses. The vast bulk of these programs is really focused on new lending. There is an element of one of these programs that well be purchasing acassets in the secondary market. An important point for your listeners and viewers to recognize is that several Important Companies in the u. S. Were Investment Grade up until this crisis hit and what we said in our programs, if they have been downgraded after the date of the crisis, they will have access to these facilities but that really is our focus in these programs. Mr. Vice chairman, the elasticity, the outcomes of this pandemic are extraordinary. What i would suggest is we dont know the speed of outcome. What do you do if we get a more optimistic outcome . Institutiondo as an if there is a rapidity to our recovery . Obviously tom, we are looking at a very wide range of scenarios as im sure are other Central Banks and policy makers. And we have got an lot of bad news in the last several weeks in terms of the spread of the virus and the impact obviously in labor market with 16 million initial claims over the last several weeks so the economy is taking a hit. As i said, because there is nothing wrong the economy. We asked people to step back from economic activity. There are scenarios that are more optimistic and obviously we certainly hope and pray they material eistize. If they do, that will be a good situation to be in. Essentially tom what were doing is building a bridge until the economy can get to the other side and begin to recover. If that happens sooner, well certainly know what to do at that time. Matt that was Richard Clarida, the vice chairman of the fed speaking with bloombergs tom keene and mike mckee. R next guest is an economist at b. N. P. Paribas. Of course he has to say the fed has the tools to do this but do you think his confidence and optimism are deserved . Good morning. I would say yes. Ive been impressed by the speed and the reaction of the fed and you have the extending reach of the interventions. The most recent one on the high yield and buying paper of companies that have been victim of a downgrade because of the virus. I think once activity picks up again, because were in slowdown mode, it is going to be a very gradual process. The difference between saying that and saying that inflation s going to be problematic. I think for that to happen, it is going to be a considerable time. Matt how important is the Energy Market in the u. S. , william . I mean, it makes up a lot more jobs than i had previously realized and with prices this low, that is bad news. Indeed. Now it remains to be seen whether the agreements on the production cuts are going to have any significant Lasting Impact at all. I think at the end of the day, depends on demand and that i think the element which is important to keep in mind of lockdown ends, there is a prospect for higher demand of oil and also Risk Appetite comes back. Spreads are now on the high yield part. I think what is also going to happen now is it chris the possibility of hedging production given the still very steep curve. I think what is the the key test is is this sufficient of a cut considering the drop in the amount that we are experiencing well be seeing for weeks to come. Matt how would you compare the u. S. Experience versus the European Experience . Ok. They came on a little bit later with regards to the coronavirus peak and with regards to the shutdown. They have much more diverse reaction to it throughout the states but they also have less of a social safety net and they have this big energy problem. Indeed. I think it is on the one hand, on the other hand, if you look exposure, you have the to china which is considerable. The fact that so many countries have been ended up in lockdown, very severe lockdown with of course the very high degree of enter trade which is creating spill yoves within the European Union and the eurozone. That has been a big issue and a big on the other hand, the over net is i would say equality. In the u. S. , the concern i have is when you have fed officials, unemployment may spike to the low answer to and then move back toward the end of the year, 8 , that is still a very high number. That is a consequence of the hugse concern that is going to continue huge concern that it is going to be to continue to be a drag on the economy. What kind of impulse is going to come from the fiscal policy. It then circles back to the role f the fed in buying the paper. Matt well talk more about this. Were going to hold you over. The chief economist at b. N. P. Paribas. He stays with me this morning on the European Market open. Coming up, Oil Holds Gains. We were just talking about this with william a little bit. Well discuss the outlook for the commodity and the effects on the Global Economy next. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. We are about 35 minutes away from the start of cash trading and were looking at what could e the kickoff to a risk on holidayshortened week in europe. Il is Holding Gains today. Ill it be enough to offset the problems caused by the coronavirus . President trump said the cuts are going to be twice as much as experts are reporting. The chief economist at b. N. P. Paribas still with me. We talked about this already, william. There is on the one hand. Oil other hand too, prices are usually a stimulus for the consumer when they are cheaper. Is that the same in europe as it is in u. S. . It will be once people are allowed to drive around again. For the time being it is not a factor but eventually it will be a similar clearly i think this is something that of course made it more difficult to establish some degree of balancing the market. The market is reacting to decline in prices. Matt were going to talk in valerie t with dombrowski. Hat do you think about the european effort to save the economy . Well, it is an important step that was made last week. More needs to be done. Talking with the about the investment bank, the loans, that is good. It will be revealing to see that in some European Countries like the netherlands, that was the issue that we will never have. Matt chief economist at b. N. P. Paribas. Matt welcome back to the european open. We are 30 minutes from the start of cash equity trading. You can see we have 1 gains on ftse, character and dax futures. Over in the u. K. , the government is planning to extend its lockdown this week. More than 11,000 people with coronavirus have died in the country so far and the governments chief scientific advisor says he expects the daily rate of deaths to continue to rise. Meanwhile here in germany, a group of startups are working on an app that could help ease europe out of its lockdown state. He team behind pept, which stands for pan european privacy proximity. A method to keep track of who could have been exposed to the coronavirus. Who has it and that could help slow the spread. On the phone with us now is a member over the groups Leadership Team and a founder and c. E. O. Of the a. I. Firm. Am i pronouncing this right . Are you sure you have gone with the best possible name here . Good morning by the way. What you see is what happens when scientists create names. The Science Behind this was quite important which is why you ave a name like pepppt. Matt talk to me about why this tech is distinct i ever and why you distinctive and why you think it will help. It has been discussed a lot and done in prior pandemics and epidemics and worse. The problem with coronavirus is that people are contagious before they have any symptoms. So just going around and measuring fevers does not help. We need that look into the past and the only way to do that efficiently is through digital means. That has been shown in various countries in asia. The question that we had in europe is is it possible to do that without infringing privacy and how could we cross boards . This is why we created this at peptpt. It could build on one framework that for all would guarantee privacy and for all guarantee that you are part of if you are using that platform, then you would have intercountry nteroprability which i would say is the most important for trade and everything that happens economically. Matt i cant search the web without having to click every time i change a page. Something about privacy and data standards. My doctors cant really talk to each other unless i sign forms. With all of these issues, it seems like this kind of undertaking would be impossible. How do you deal with the privacy concerns . Sad that f all, it is the web has become a little bit unusable because of privacy implemented today. This is not necessary when youre looking at contact tracing. Up until the moment you want to get in touch with the healthcare authorities or someone wants to get in touch with you and will ask you directly, you dont really need to know the identity of a person and the whole principle behind it is to have a completely anonymous virtual identity of someone that gets installed into their phones. Not even their o. S. Provider will know. Then you have your proximity history. The phone will remember who you were close to. Only if youre marked as being infected will you be part of any process. Part of that process might be someone asking you for your identity, your phone number whenever you live. In most countries that would be part of a legal process. Chasing Infectious Diseases is typically put down in law. Only you can you can choose when to reveal your identity in that case. It is not like you have to click on every page and say ok, i want this, that and the other. That would make your telephone completely unusable. The way to preserve privacy is virtual anonymous identity that does all of the tracing. Only once you want to reveal your identity because someone asked you to, you choose to do so and thats the way you go forward. Matt the European Commission is coming up with an approach to stop the coronavirus. Have you received report fr