Dimer scraps its forecast for higher profits amid the pandemic. Results come they can pass. Credit suisse provides a full picture of its First Quarter. Dont miss that exclusive interview. Into some ofget those storylines. This is about a First Quarter that will be difficult to assess. Thats a beat, during the First Quarter, Credit Suisse beat on the estimates, delivering 1. 3 billion. For everyone who has a bloomberg terminal, look jump in there. Francs, theswiss estimate was for 203 million. All of the swiss banks have already adjusted and announced a dividend. Instruction there will be more impairment to come. Thats the top line. Nejra absolutely. As you hinted at, one corporate casualty in the Coronavirus Crisis has been dividend payments. Credit suisse has already said they would hold back on some of the payouts. Ist First Quarter provision the red headline to focus on. As you say, they may see more impairment come, another line dropping is that Credit Suisse may see more reserve bills in coming quarters so it needs a loan loss provision with the u. S. Banks very much in focus with european banks, there is expected to be a challenge from european banks. There some feeling that the likes of Credit Suisse and ubs maybe a little bit shielded than some of the others, for example deutsche bank. There are different Business Models, but at the moment, european banks trading at the steepest discounts to u. S. Banks on record, something to bear in mind in terms of the context going into this. Manus will catch up with the new ceo who joins us a little later, at 9 00 a. M. London time. One of the big nordics delivering their numbers. A loss of 1. 60 9 billion, thats tighter than the market had anticipated. The credit impairment number 2. 15, lending to oil and gas in the nordic is one of those big issues, will lending criteria be changed . Ratio rises to 16. 1 from 15. 9 . Quarter, the first First Quarter core equity tier 16. 5 credit impairment, so everybodys coming through. The question is what happens next in terms of exploring exposure. Today is a big day, not just for the banks in europe but of course we will have that conversation shortly with the schwinn bank ceo in terms of what is the underlying attitude. A big day for europe. Nejra absolutely. Just on Credit Suisse, they say the scale of the virus is difficult to assess, but they expect resilient performance during the crisis. A couple more lines coming through, saying underwriting and advisory recovery may be limited, but we will come back to that conversation on the banks. In terms of europe, generally the news we had overnight about the ecb being able to take on , thedebt as collateral question is whether that becomes part of the Asset Purchase Program and whether the ecb to some extent could be the backdoor way for europe to get to this debt burden sharing which is such an issue as we look ahead. I was slightly joshing this morning saying it was less moral hazard at the ecb than there is at the fed. Taking this junk rated debt and collateral. What is worth sharing, that is the question. Be euros is it would positive. The markets are moving. Nejra in terms of what youre markets, a bity of green on the screen in asia for a second day. The s p recovered from the worst drop in three weeks yesterday. European features in the green as well, in terms of the 10year treasury yield. Were back after dipping the lowest this week. The bloomberg dollar index absolutely unchanged, underperformance in the aussie with weak pmi coming out of japan overnight as well. As you say, very much still a focus on oil. Brent up 11 , but a lot of questions on whether we see the same thing we saw in may. So this is just a brief stabilization. U. S. , u. S. To the treasury secretary Steven Mnuchin and has said we anticipate most u. S. Economies will restart by the end of august am suggesting the hotspot of new york has continued to head in the right direction with death at the lowest rate since early april. President donald trump has signed an executive order temporarily suspending u. S. Immigration. Marie, great to see you. Lots of things to discuss, but how long is the temporary suspension . It is for 60 days, but President Trump did indicate it could be expanded the sees it necessary. Two things to take from the executive order, one is that it applied to foreign nationals on foreign soils, so if you have right now a valid visa or travel document, you will not be affected. The second thing is that it also affects individuals looking to become permanent residence in the United States. The measureump says will ensure that when the economy starts to reopen, americans are the first in line to get a job. This is something we have seen out of his playbook since 2016, centerpoint of his election campaign. The economy we know has been weighing on the administration as a top priority. Right now one in seven americans have a job in february do not have a job, and that will get worse we get to jobless news today as well. And you heard Stephen Nguyen saying the economy relatively should be open by the in the summer, in august. What we see the administration doing is slowly reopening some of the states. Were seeing progress in new york, recording the fewest daily for talent he since early april. New york is focusing on building tracing plan. , job that fear in america losses at a 45 year high, the biggest pendulum swing on record. In the specter of war, i refer to the tweet. Thinkingof people are about the conversation we had in january, right now President Donald Trump tweeting about the fact that he is giving the navy, tothe navy has authorization destroy any iranian gunboat that harasses american ships. It comes after what happened last week. Last week 11 gunboats of the Islamic Revolutionary guard and very close to american ships. That could potentially play out a little bit in the oil market. You know any kind of interruption of oil through that straight could disrupt the supply side. So little bit of support on the oil price, but i would say this premature to start thinking about supplyside disruptions we. Ave serious demand destruction done, lets get you up to speed with the first word headlines from around the world. The u. S. Investigations are taking place on inside information on russian negotiation with other oilrich states. Sources tell us the regulator is this. G the u. K. Is also investigating suspicious trades. The commission has floated its trillion euro Recovery Plan ahead of the Virtual Summit today. In good news for countries hardest hit by coronavirus. Korea, the country has suffered its worst contraction since the Global Financial crisis. Suggesting the country may not grow it all this year. Theowing consumption and coronavirus, the u. K. s planning and the data will help scientists understand the rate of infection. Prime minister Boris Johnsons government has been criticized for not doing enough to trace that outbreak. 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. Nejra coming up, major state aid. House Speaker Nancy Pelosi tells moreg there will be on that next. This is bloomberg. Manus this is daybreak europe. To the markets now, s p offers a premium over treasuries, the widest in a decade. Market, do youd want a little bit of yen in your protection bag . The head of fx strategy, good to have you with us. Should we have a little more active swag in our bag . What are you so optimistic and how do you protect yourself from an fx effect . Good morning, thank you for having me on. Of economic resumption months they do end, we see Downside Risk in Market Equities nd while its had a big intraday correlations have broken down. We think of it in three phases. , thate an initial balance was on the initial equity move lower. Within had a subsequent rally, this was on the emergence of dollar funded stress. Since then weve been quite , and equities are recovering somewhat. But the key question Going Forward is, when will it come off . Will we see the resumption of dollar Funding Strategies throughout the market . Should reliably perform as a short. Nejra interesting, sam. How are your spacing expressing any views around the volatility weve seen in oil prices . U. S. T shrugged off the inventory yesterday but a lot of people saying even 100 a barrel on wti is not implausible at this point. Is, whileirst point it may stills that have important implications for other markets. Events which previously were being dismissed a zero probability, which means Operational Risk has to be means it can, and stay quite elevated. Is, the crosstor currencies in response has been whileed relative to canada and norway have underperformed, not anywhere to the extent that one would expect. When we look across the metrics, they reveal that the market was already positioned with its dispositions across g10 currencies in the commodity to parts of the downside. Manus can you tell me a little more about the dollar positioning . The libor rate coming in little , relative to the you a s rates, compressing a little bit. That tells me something about liquidity in dollars, something about the destressing within the dollar market and thats what weve got on their. Liquidity easing, and is that going to have an impact on dollar positioning . In short, i think the answers are yes, and yes. Ande seen some pressure that is priced to continue into the current structure as well. For is most important Foreign Exchange is the fx and bond yields. What wees into account were talking about, but doesnt take into account the cross currency basis. From threemonth forward points youreualized, it shows currently looking at a hedging cost if you own dollar assets. This is about 90 basis points annualized, the lowest since 2015. Rate differentials, we think that ultimately will undermine the dollar. Nejra sam stays with us. Relative flow of funds in respect to the Central Banks, not to do with the coronavirus. I found that really interesting. Lets get to house Speaker Nancy Pelosi, telling bloomberg that a major package of 8 and local government be in the next stimulus from congress. Take a listen. We will be able to do it in a very strong, bipartisan way, to pass legislation as it passed in a bipartisan way in the senate. Fare, but werd will take a recorded vote. We are 430 members now and we need to have a quorum and majority to get it passed, but we will. Something like 370 billion to replace the ppp program. 25 boone dollars for testing, what is not in the bill that you think still needs to be done . First, let me just say how pleased i am with what is in the bill. Two weeks ago, the secretary of the treasury called me and said he needed a quarter trillion dollars and 48 hours. That would mean by tomorrow, two weeks ago. The Republican Leaders said 250 for the program in knots thats it, were not making any other additions. We objected and Work Together for our proposal would they objected to that, made a counter proposal, which was rejected by the republicans. For one week, they refused to negotiate until that thursday. Then they realized they had no , and in the bill weve for weve course support the 250 which is part of what we had put together to support our Small Businesses, their entrepreneurial. Support, theres no question that we would be supporting that. But it took them a longer time than it should have to agree that we need to make sure that even the smallest of Small Businesses would be included in that, and that we would be because the key to our economy is testing, testing, testing. In the 75 billion to hospitals. Finally, they agreed to the package we put on the floor at and finally we can move on to the next phase. Does this take care of the rescue part as opposed to recovery . We talk about rescue versus recovery. As part of rescue are recovery, and what is the process of getting that done . In the first few bills we bipartisan strong, way, started with testing, and a month and a half later the administration has still not related information to said they will. That was part of recovery. They we went into mitigation, to mitigate the damage with initiatives to protect our Small Businesses, to provide more assistance in terms of health care. Now we have to go further to help state and local. State and local means this. It means the health care worker, police and fire, first responders, emergency services, the teachers in our schools, the transportation workers, who get essential workers to work. Again, its about the people. These people are risking their lives to help save other lives, and now they are losing their jobs. So its very essential that are andes have this assistance to do so in a very significant way, to recognize the lost lackue that they have from of a stream of revenue because of the economy, and secondly, what they do to address the coronavirus. That was house Speaker Nancy Pelosi. The ecb said it will accept some junk rate debt. We will look at that next. This is bloomberg. Nejra this is bloomberg daybreak europe. Manus cranny in dubai. Germanys ruling condition with of package to dampen the further Economic Impact of the coronavirus. The European Commission is floating a 2 trillion euro plan of economic recovery ahead of talks between e. U. Leaders today. The plan involves tapping the market for 320 billion euros and will partially use the existing seven your budget and the contentious rate over the rescue package, the ecb said they would accept some junk rated debt as collateral for loans to banks. The move to shield her euro areas most vulnerable economies as they face the risk of credit downgrades. And we get that s p rating on friday. Coming up, President Trump says georgia is reopening soon after his executive order suspending u. S. Immigration. Awesome internet. 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 ] manus good morning from dubai. It is daybreak europe. These are your top stories. New york reports the fewest daily coronavirus desk since deaths since early april. Steven mnuchin expects most u. S. Businesses to open by late summer. Meanwhile, President Trump suspends immigration. Somehe ecb will accept junk debt as collateral for loans. Agrees to 10 billion euros in aid. The result season comes hard and fast. Credit suisse low loss provision surge three times the amount analysts had expected. And a new ceo joins the team. Good morning. Nejra welcome to daybreak europe. Story raising pressures over where there we end up with some junk debt, could the ecb become europes backdoor to sharing its debt burden if it holds National Debt for decades, some economists are talking about . In terms of corporate earnings, i know youre going to go through Credit Suisse in just a moment, the biggest news in terms of corporate news. Third Quarter Sales down 13. 3 to 1. 70 4 billion euros. In terms of any guidance were getting, with the remainder of ,hare buyback plan suspended with a risk around coronavirus. Halting its buybacks after those details are dropping 15 . With the low long loss provisions in focus for Credit Suisse. Manus low loss provisions coming in at 568 million swiss but youve got fixed income sales trading up 26 , equity still trading up 24 . We may see more impairment in the coming quarters, and there is the point. Buyback is very much a focus, the share back is on hold and they have repurchased a third of a trillion swiss francs of until march 13. Becauseve a look jobless numbers in the united , s p futuresrica up. 25 . A lot of it around the crude rally, 14 , as the president raises angst against iran. News from the the u. S. , the treasury secretary Steve Mnuchin has said he anticipates most of the u. S. Economy will restart by the end of august. He also said the outbreak tends has canrend were seeing train you to in the right direction with deaths at the lowest rate since early april. Donald trump has shifted his tone somewhat, disagreeing with the georgia governors plan to begin reopening, saying it is too soon. Great to have you with us. Market,ve in the oil but im struggling, inventories are the highest in three years, demand in the u. S. The lowest since the 1990s. Do you trust the reprieve in the oil markets . Are you preparing for lower to come . I think thats really the big question, theres talk that president is going to help, hes going to try to do something. You do have trent 10 million jobs at stake in the shale industry. Texas is an important essay for his reelection, and i think there are some strategic implications because we pretty much already know that the u. S. Will no longer be an oil exporter next year given the loss in production. So have prices dropped too far . Our negative prices too much, given the storage concerns . Probably. Is this reprieve, as you call it, going to