Debt as collateral for loans as eu leaders meet today to discuss a 2. 2 trillion revival plan. Loan provisions jump at Credit Suisse as the lender builds reserves to withstand the coronavirus pandemic. We will speak exclusively with the banks new ceo just after 9 00 a. M. Hopes forrs crafted higher profit in 2020. And the earnings deluge continues. Revenueetting hermes out, down 6. 5 percent, which does not seem quite so bad all things considered. Anna we are getting numbers out of unilever as well, so the earnings daily continues. Things not looking great for unilever. Delucia the earnings deluge continues. Growth of zero, so 0 . The estimate was of an increase and itr just over 2 , seems on pricing and on volume they missed estimates. Pricing looks to be lower than estimates and volume looks to be lower than estimates. That seems to be where we are on the top line. They are also saying they are withdrawing their previous 2020. Uidance First Quarter underlying sales slack, as i mentioned. Clues looking out for any around the key business. Are they still looking at Strategic Options, or is that something they are putting on the back burner as they deal instead with logistical issues, staff issues, supplier issues surrounding coronavirus . We will get more details on that, no doubt, and certainly we will when we speak to the ceo of unilever, who will be joining us very shortly. That detail in just a moment. Thats what weve got on the underlying earnings story. With what is coming through on the Banking Sector. Credit suisse is Building Greater reserves to weather the coronavirus storm. The money it is setting aside for bad loans is almost three times as much as it expected, the most since the financial crisis. Profitability has grown, but the Investment Banking unit took a hit. The pretax loss was much higher than predicted. In the u. S. , House Speaker nancy pelosi could be set or a clash with Senate Majority leader mitch mcconnell. She says the near 500 billion dollar aid plan before the house is an interim step, and she wants a major package to follow, a slowdownll wants in doling out federal help. The u. K. Government is planning to survey 20,000 households in a bid to track the spread of coronavirus. The data will help scientists understand the rate of infection and how many people may have developed antibodies. Prime minister Boris Johnsons government has been criticized for not doing enough to curb the spread. Matt lets get over right now to the markets. Stocks in Asia Advanced as investors assessed the rebound in crude prices and a slew of earnings against more evidence of the severe impact from the pandemic. Oil edged up above 18 a barrel in new york. Our cudmore is standing by, managing editor in singapore. Does the Oil Situation look like to you in terms of the way it is playing out . Is this just going to be a blip we saw, or will the reverberations be felt for much longer . Mark its not a blip. I think we will see the fallout for some time to come. First of all, the negative dynamics in oil prices remain. Rather than seeing it as a blip, i would say it is a very extreme situation for the negative dynamics that are real and are going to stay combined with some funky futures at the front end that have been shorted out in terms of etf flows, in terms of the extreme lack of Storage Space in the front end, and theres too much etf flow concentrated on those front end contracts. Many of them are doing well, but we are going to see not a repeat, but an echo to some extent as we get closer to those expirys. Overall, oil is going to remain kind of under pressure. The consequences for banking stocks, the financial sector, very leveraged, both because it spins off a lot of wealth and because there is a massive amount of leverage linked to it and through Corporate Bonds. Overall, we will see unemployment in many factor. S, it is a big i think oil remains one of the big drivers in the Macro Markets overall at the moment. Anna thats interesting. Jp morgan says they do not see this as something systemic. Low of the reason is the percentage the oil market took up going into this particular crisis. Thats one of the reasons they do not see it as systemic, but i suppose anybody who thinks it might be could be looking at the Banking Sector. Cutting reports from the Banking Sector and trying to assess what kind of exposure they have getting reports from the Banking Sector. Mark i suppose theres a difference between saying it is systemic and saying it will continue to be a major macro driver. Its not like a Systemic Risk and the fact that contracts went negative and have blown up loads of construction. Overall, the whole financial system, the framework is not a risk in the same way it was in 2008. Its a completely different crisis, and i think because back then, the big worries work Systemic Risks, we are too focused on the idea of Systemic Risks now. Thats not the problem we are facing. Theres no obvious Systemic Risks at all on my radar at the moment. We are talking about real economic damage now, so i think Systemic Risks is a little bit of a red herring. But they emphasize again there has been so much put aside for credit losses, more than twice analysts estimates, and if think it will emphasize the european banks, probably even more so than u. S. Banks, have major credit risks looking ahead. Anna thanks very much, thanks for joining us. Let us know your thoughts on the markets. Coming up, we will be speaking about corporate earnings, and we will do that with the ceo of unilever. The company is reporting 0 sales growth in the First Quarter, coming in below estimates, but of course, it is all about coronavirus and the strategy for dealing with that. This is bloomberg. To bloombergback markets. This is the european open. We are 50 minutes away from cash trade and futures not doing a heck of a lot. Green arrows there as you can see. Unilever has withdrawn its growth and margin outlook for 2020. The company also reported flat underlying sales for the First Quarter. Joining us for his first interview of the day is allen pe, ceo oflan jo unilever. Appreciate your time. Thanks for joining us. Let me ask about your visibility. Is itstill so cloudy still so cloudy you cannot tell with the second half of the year is going to be like . Are those clouds starting to clear up at all . All, let merst of just acknowledge this is a gigantic human crisis we are dealing with right now. We think we are in the middle of it, not coming to the end of it any time soon, and we are managing our business more for responsiveness and agility to what happened then walking in on a fixed scenario of the future. I think everyone trying to secondguess what is going to happen with the evolution of this virus, its human impact, its economic impact, has regretted locking in on a position to soon and thats the posture we are taking. Anna good morning. Good to see you. When we look at firstquarter results, should we think about this in the context of there being enough stockpiling, having gone into these numbers . Ourtomers and northers in european and american countries stockpiling your goods . Heres how i think about this, a degree of internal hedge. We saw a very soft parts of our business. Our Food Service Business that supplies restaurants was very impacted, particularly in china, theres not a lot of tourists out and about at the moment. On the other hand, we have a strong hand hygiene and Service Hygiene business. Losses were partially offset by strength in our hygiene businesses. That was the bigger impact than any form budding which was primarily limited to the United States. Its really the u. S. Where we saw this dramatic stocking up, much less in europe and not at all in emerging markets, which make up about 60 of unilevers busyness. Matt what about restocking . How is your supply chain looking right now . Snagsou had any snacks . Can you give us a view of what your supply chain recovery looks like . Mr. Jope sure. Let me put it in context our response to the crisis has reflected our multistakeholder business. Our First Priority was looking after our people and the communities we work in, then the supply of goods adjusting to new demand patterns, and finally worrying about cash. On the supply front, we have about 221 factories around the world, and as of this week, pretty much the same last week, we were running at about 85 of capacity. To some absolutely heroic work by people on the front line of our supply chain, adjusting to new patterns of demand, securing new supply routes for ingredients and people coming to work to operate our factories, we have more or less been able uninterrupted. Ly matt for us, producing television from home has been a challenge, but it has been Pretty Amazing that we can do it for the most part. Im the only person in the office these days. Can you give us any specific resilience stories . What is it like at unilever working in this completely different environment . We have 150,000 employees around the world. Roughly half of those employees are office workers. Quite early on, on march 12, we ane the decision to enact indefinite mandatory lockdown of our offices and have 100 of our officebased workers working from home. Thank goodness for the investments we made in digital technology. Our ability to connect and operate has remained very strong, and, obviously, restricting individual privacy rights, we are using technology and big data to monitor individuals who are not part of our Team Meetings and are seeing in females, so anyone feeling isolated and lonely is not left behind. Stocked upo Resources Available to people who might be feeling stressed, and we sent a message of look after your family first and squeeze your work in amongst the time that is left. This is no time to be worrying about keeping a business running. That,as a result of certainly close to where we are in the u. K. , there might be more being consumed. I wonder if you are having second thoughts on Strategic Options with the business. Where have you got to on this . We decided in january we were going to do a strategic restructure of the business. 2 3 of the business is in black tea, a segment of the market structurally not growing, and i think this crisis is not going to knock us off the Strategic Direction we have set for unilever. Things like our commitment to sustainability, things like our multistakeholder model, their view we have of the future of our portfolio is not going to change because of this crisis, and we are delighted that people are enjoying a virtual couple a virtual cuppa together at this time. Matt for me, it is magnums. I. E. Far too many of those ice cream bars during the lockdown. Are there any new products that the crisis has put the brakes on . Are there any product unveilings that you wanted to do this month, next month, that you are going to have to push forward . Anything,i think if we have accelerated some things. We have a new range of hygiene were to beat launched in china and we have accelerated that, naturalbased hygiene products. And sanitizer, which is absolutely tiny part of the business, and in the last month, 30 production facilities. Most of the sanitizer we have made has been donated to Frontline Health care workers, we arek as we selling somewhat retail and as we look into the rest of this year and next year, what we will do with our Innovation Program is prioritize it. We will recognize the reduced capacity to the world and probably do fewer bigger innovation activities. Anna talking about what you are producing more of, the hand sanitizer, theres been talk of Oil Companies in the u. K. Turning their hands to ventilate. Which facilities could be turned over to that kind of practice . We are not really in the durable goods business, though we are part of the consortium to produce ventilators. It was a moment of pride for our company 10 days ago when the first shipment i think of about 4000 ventilators were out. What we brought to that his project management skills, knowledge of good hygiene practices where the manufacturing of these businesses is taking place and also connection to some of our Technology Partners like microsoft. We are very much part of that consortium, and we are proud of anything we can do to help on the front line of the health care provision. It might interest you that in africa, we believe that some ares of the countries there structurally illprepared for this virus, and in places where we have large populations, we strengthening our own medical facilities so we can provide for our teams better in those situations. Matt is there there anything i often think commercial real estate will have a challenge after this because we realize how well and a lot of us can work from home. Is there anything you think will permanently change for unilever after this crisis . I thing lots of things are going to permanently change. The most important is there will be lasting changes in consumer behavior. Workplaces, i think theres opposing forces. We have all learned we can be working from home. On the other hand, we are pretty sure we will have to reduce population density in our offices. We have not worked through yet exactly what that means for our overall real estate requirements, but there will be ripples of change from this on through allry aspects of doing business. Anna thanks very much. Thanks for your time. Have a good day. E, ceo of unilever, talking to us. Daimler has joined Major Companies scrapping its forecast amid the coronavirus pandemic. We will talk earnings and about with andrew season from Morgan Stanley. Thats next. Anna welcome back to the European Market open. 85 minutes ago 35 minutes to go to the start of the equity trading day. Lets talk about earnings season. Daimler joins Major Companies scrapping forecasts after the coronavirus pandemic takes its toll. The carmaker is abandoning a projection for significantly higher annual profit that was made just two months ago. That announcement came alongside a slew of corporate earnings and oil prices rebounding for a third day. The chief cross asset strategist at Morgan Stanley with us. Ive been reading your notes ahead of the conversation. I felt quite uplifted. You talk about how it is in the interest of the Global Economy to tackle the pandemic properly. Whilst that might sound obvious, theres a lot of economic pressure coming to bear on policymakers to change course. Liftingd be cautious of lockdowns to soon from an Economic Perspective . I would. This is something we feel strongly about, that what is best for controlling the pandemic and what could be best for the market are actually the exact same thing. By that, i mean i think for markets what is essential is confidence that what we are going through right now is the worst of it and that this will be the worst of the pandemic numbers and this will be the worst of the economic growth. I think if markets and investors, whenever you are confident that the worst is behind you or you are going through the worst right now and the future by definition is going to be better, youre much more forgiving of bad news. I think you are much more likely to contract risk rheniums or pay a lower risk premium going forward. That is essential because if you dont do that, if you risk another large dip in the economy, another large spike in numbers, i think thats the type of thing that would really hit confidence and be the real risk of a retest of the lows or renewed bout of market weakness. In just 20 seconds, how do you feel about turning season so far . I think the earnings season is really going to be about 2021. I think people are aware that earnings this year are going to be very weak or in some cases a writeoff. I think investors will ultimately look ahead to the year ahead. Matt i wanted to take a quick break and come back because we got some meaty stuff to dig into with you. Shield theing to weakest euro economies from ratings cuts us the Central Bank Says it will assess will accept some junk rated debt. Fascinating stuff, and the commission is presenting a 2. 2 trillion plan to leaders today. We will discuss. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. Quickly want to bring you some Credit Suisse headlines. The company, the bank taking more than 1 billion in writedowns and provisions for bad loans after the coronavirus. We learned that a little bit earlier, and we are going to speak with the new ceo a little bit later. Right now, we are seeing that Credit Suisse and the rest of the executive board are going to donate 20 of their pay, so theres a lot going on throughout this Coronavirus Crisis for everyone. For Credit Suisse, it means a huge writedown and also getting for the bit of the pay executive board and giving it out as opposed to some charities. The European Commission, speaking of money, floating a 2. 2 trillion plan for economic recovery ahead of talks betwee