More protection, the ecb tweaks policy. The economy ravaged by the coronavirus. Ftse futures point lower, and much of europe is closed but we will see trading in london. Apital is coming apollo aims to raise 20 billion and several new funds for opportunities in distress and private debt, this after boeing sold 25 billion worth of bonds in the largest offering of the year. Just under one hour away from trading in the equity markets that are open. London notably, and the ftse futures are down this morning. We also see s p futures, dow futures, and nasdaq teachers down. Nasdaq futures down. We know the u. S. Markets will be open as well today. Typically a european holiday. The u. S. Has detonated a different has designated a a different day for that purpose. The notable figure, the first one i see in the First Quarter, 802 Million Pounds versus 86 Million Pounds in the previous year. This is a number we are looking out for a lot of banks during this crisis. Newsrms of other notable from rbs, it is inappropriate to give an update on their outlook at this time. They are not giving an update on the outlook right now. Is significant uncertainty, that rings true with a lot of companies during this pandemic and sudden economic stop. They are deferring decisions on future for investors waiting for income. The bloomberg first word news, the top stories for you from the bloomberg terminal. President trump is speculating china may have chosen not to contain the coronavirus. The president says he has seen wasence that a lab in wuhan the origin, and it is possible they got out due to a lab mistake. U. S. Officials are still investigating the source. China says accusations that they released the virus from a lab are unfounded. Gilead sciences may send 1 billion on its new treatment may spend 1 billion on its new treatment, but how much revenue can it generate . Gilead says it is tommy in early the outlook for the future it plans a sustainable model for patients. Amazon is telling investors to hold tight as the ecommerce giant navigates the hardest time it has ever faced. Amazon saw its profits shrank in may incur a loss in the quarter. Rangeing income could ofm 1. 5 billion to a loss 1 billion even. Apple did not provide a forecast for the first time in more than a decade. It is concerned performance will suffer later this year. It sent shares down in extended trading. Despite the tech giant reporting a 1 rise in quarterly revenue. A also sell retail sales hit quarterly record. Globaglobal 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. We are getting headlines as well from ryanair. Ryanair sees job cuts up to 3000 pilot and crew cabin members. Ryanair coming out with jobs numbers, jobs cut numbers as it releases or sees for the losses. In the second quarter, peak summer, what would normally be summer travel. Ryanair, a net loss of 100 Million Euros in the First Quarter and further losses in the second quarter. Areks in the u. K. And u. S. Set to slide for the second day in a row after sobering news from amazon and apple should asian stocks in futures. Most other indexes in europe will be closed due to the Labor Day Holiday. Cooper, ando laura first off, it is gloomy, but a row, not badn for a shutdown that we are facing. Absolutely, look at the s p 500 in the u. S. , it posted one of the best games on record, in the top 10 in april. That points to the dislocation of what we are seeing in the Economic Data and the strong market performance. ,e have seen the rally broaden but it continues to be driven by mega companies, large tech stocks. When you look at the valuations, they remain exceptional across tech firms. We are seeing apple, out in the first time in a decade with trying guidance, we see amazon concerned about being the hardest hit they have ever been. There is a divergence from what we are hearing from companies and the exceptional performance in the u. S. Stock market. Matt what are we seeing, what are you seeing in relation to the mliv question of the day, you are asking, will the euro related tois closely what the ecb does and has done, what answer are you getting . Laura what prompted this question was that the euro did surge yesterday, largely due to rebalancing in terms of building up an appetite for euros. We are saying the levels of the same after 12 hours, there is a question if they can keep this momentum. Fact thating the resuming operations are not targeted, that will allow the funds to be used to extend credit to mortgages. Some potentialng lift, but ultimately this is something Christine Lagarde a plan, andwe lack in Underlying Services there will be jitters on the political front because of the Bond Purchasing Program to reach its target by october. We will see further stimulus in the ecb in the absence of fiscal. Ultimately in terms of the euro against the dollar, it is more likely to be lower over the coming months. Matt thank you very much for joining us, laura cooper, bloomberg mliv macro strategist. You can get involved with our mliv question of the day, and give your answer any feedback on the ecb yesterday, that is related to the euro price. Coming up, we will talk more about the ecb stepping up its response to the Coronavirus Crisis by cutting funding costs it banks even further, but has refrained from boosting its bond buying program. Laura was talking about how there could be room for that later. We will discuss that next. This is bloomberg. With antivirals, the drugs that fight viruses inside your body. They stop the virus from replicating or infecting cells. A recent promising report from gilead, the company says it helped coronavirus patients recover faster than standard care. President trump has touted two antivirals, hydroxychloroquine and chloroquine, generics made by sanofi and novartis. There is limited evidence they work against the coronavirus. Two trials could have results this month. Next, vaccines, they are considered crucial to the pandemic because they create widespread immunity. They also take longer to develop. They must be proven to be extremely safe since they are given to people who are not sick. There are 70 vaccines in some stage of development. Companies developing them include johnson johnson, sanofi. U. S. Health officials are , it is beingccine tested on 45 patients, and there may be earlier results later this month or in early june. Finally, the indirect therapies, they do not directly treat the virus, but they help patients by mitigating some of the effects, such as difficulty breathing or severe inflammation. Matt for more, you can catch our special coronavirus on saturday at 2 00 a. M. U. K. Time. Bonds showed and immediate signs of relief after the European Central bank eased conditions on longterm loans. It also introduced socalled to loosen the flow of money. President Christine Lagarde sparked a bond rally when she said the ecb stood ready to increase the size of its asset purchases. Uncertainty high surrounding the ultimate extent of the economic fallout, growth staff,os produced by ecb gdp could fall by 5 and 12 this year. Depending crucially on the duration of the containment measures and the success of policies to mitigate the economic consequences for businesses and workers. Matt that was ecb president Christine Lagarde. Yesterday, a little more careful than she was in the previous months meeting. Joining us now is neville hill, chief european economist, Credit Suisse securities. Let me get your first overall take. I thought the meeting was interesting in that my reactions to the headlines changed over the day as the market dealt with it differently. But there was not a lot of new news there. Neville i think that is right, and to be fair people would have been foolish to expect a big shift in policy at the ecb this month, having seen a huge policy response through the course of march. That is where we are at in the policy response in general. March was about Central Banks and governments building this phenomenal policy architecture to deal with the crisis. We are now at this stage were Central Banks and governments are finetuning and improving the toolkit they have launched. That was pretty much what Christine Lagarde announced yesterday. It was some improvements on the existing. Matt why do you think she held back . Clearly the markets were expecting more in terms of the asset purchase program. We sell the euro rise to 1. 10. Why not fire yesterday . Neville i think that is likely because of the internal opposition to the size of the pandemic emergency. It is programmed much further at this stage. That is a lot left in asset purchase program. To that extent it is not urgently needed at the moment. Whereas i think the evidence we have started to see in terms of getting liquidity into the real economy through the banking system, the measures the ecb has already taken combined with government guarantees do seem to have a beneficial effect. Banks are making that more available, lending has picked up. Things like the tltros help that policy, and i think in terms of helping out the bond markets, at the moment the ecb feels they have done enough, and there is the benefit in not increasing the envelope at this stage, and hopefully getting european governments and the finance ministers to focus more on a rescue program or package, and that i think is what is needed in order to calm sovereign bond markets. Through, and there is the alphabet soup of this crisis which is more serious crisis. Previous walk us through the bank lending programs. Will it increase lending . Neville i think there is one s, acronym which is pltro which in plain english means the European Central bank will lend 2. 5 mmercial banks minus for around a year with no strings attached. That should allow banks to deal with the stresses that are built up in the euro area shortterm. But also give a good reason to borrow money for a year minus the 2. 5 , and by short dated italian bonds with a yield that is positive. That is what that scheme is designed for, but really the key point in its funding in itscture key plank funding architecture, it was last month the European Central bank took the radical step reducing the Interest Rate charges those banks below the banks. Rate it charges they cut that even further to 1 yesterday, and that means things can borrow for a few years from the ecb. It is important because the European Central bank is doing monetary easing through Interest Rates that should improve the profitability of lending to the real economy for commercial banks. Really increasing incentives for them to deliver liquidity particularly to the business sector that really needs it at the moment, and keep businesses alive and sustained through this period of lockdown. Matt these banks can get access to multihere loans for 100 basis points, how much are they going out in real economy form . Moment the the Interest Rates have been trending down for the last few years. Is this is can borrow at around 1 at the moment. What is interesting so far, we have only just started to get evidence on how these policy packages are working. We have the European Central banks lending this week with a survey how banks are seeing how they are performing, and what is interesting is you saw banks expect to ease Lending Conditions to companies over the next three months. Normally when you have a recession, banks are desperate to tighten Lending Conditions to businesses. The credit easing policies we have seen launched by the central bank and government do seem to be having the desired effects. Loans in march to business the across businesses across the euro area were up strongly. It is early days but it does look as if these policy mechanisms in terms of getting liquidity into the real economy have so far in the euro area been successful. They deserve some credit for that. Matt we will keep you with us. Neville hill, chief european economist, Credit Suisse aboutties, talking to us the great pandemic. Coming up, strategist expectations hit rockbottom among the highly volatile earnings season. We will look at the opportunities next. This is bloomberg. Welcome back to Bloomberg Markets european open. We are 36 minutes away from the cash trade in markets that will trade today. Most mentally europe will not because of the Labor Day Holiday. You will get the ftse trading in london and it looks like it will be a down day. Neville hill, chief european economist, Credit Suisse securities is still with us. Earnings season is predictably bad. Cases aren a lot of getting outright canceled. How long do you expect this to last until we get some visibility . Neville i think it is going to be difficult to get a huge amount of clarity until we had a good sense of when any form of lockdown or social distancing restrictions will be eased. And ultimately i think that boils down to over effective treatments or vaccines. I think we are probably past the absolute worst in terms of the Economic Data. Beenbly april will have the worst month for Economic Activity globally that any of us will experience our lifetime. It is the first of may today, and you look at measures of lockdowns in europe that are beginning to ease somewhat. The absolute crushing decline in Economic Activity in corporate revenues is almost certainly coming to an end from where we were at the start of the year. But what we are unclear of at the moment is that vshaped lshapedshaped and recovery in earnings, because ultimately it will depend a lot on how effectively and quickly governments can ease restrictions. We do not know yet whether we will start to see in countries like germany whether the lifting of restrictions leads to a renewed outbreak of the virus. If it does, we have a problem. But if they can keep the outbreak contained while starting to return some Economic Activity that has been shut down , back to being open again, then there could be a decent vshaped recovery from there. Matt i suppose the most we can hope for, keeping in mind that a vshaped recovery, is a vaccine. At that point we have to worry less about another outbreak and backchecking. Thank you very much, neville hill, chief european economist, Credit Suisse securities. U. S. G up, 1987 highs, the stocks have their best month in three decades, but still lower. This is bloomberg. Matt welcome back to Bloomberg Markets european open. 30 minutes away from the start of cash trading in the markets that are open. Most European Equity indexes are closed today for the holiday. And inon we see trading, the u. S. We will see trading as well. The u. S. Celebrates labor day on a different day. Stocks in america ended their best month in three decades on a slightly sour note on the very last day of trading. But it was awesome otherwise. Yesterday we got decimal Economic Data and corporate results reflecting the toll of the coronavirus, but everybody had priced that in for the past four weeks. The s p had hit a sevenweek high at the end of last month, the end of april. You see here the massive gain on the nasdaq, 21 . The news is more decimal, more than 3. 8 million americans filed for Unemployment Benefits last week, sending the sixweek total to more than 30 Million People. As u. S. Employment continues to be savaged by the virus, the fed lending to small businesses, designed to keep workers on payroll. Of the central bank is also widening its main Street Lending program to more borrowers as the revenue and employee limit has been raised by 50 . Jeanne asserafbitton, global head of market research, lyxor asset management, joins us right now to talk about what is going on in economies around the world, and how that will affect market. What do you think about the incredible unemployment numbers . We knew it would be bad, but did we know it would be this bad . Jeanne it is very difficult to make a proper estimate. Magnitude thatof is quite striking. You are bound to have a huge spike in unemployment. Magnitudeorder of that people have to assess. I guess that is surprising to most. That is why Central Banks and governments are trying to do their best to mitigate the damage. The point is exactly investors are paying attention to. What do Central Banks have in store to fight this . What do you think about the increases we saw from the fed . I know a lot of investors are moving back to the u. S. American investors are pulling their capital back home right now. Is the u. S. Wellequipped to deal with this kind of thing . Often the u. S. Has a way to get out of crisis, so that might be why they are driving back. Peoplelso some reflex have in times of uncertainty, which is being closer to home, in a way. I do not believe it is going to be much easier in the u. S. Than elsewhere, but i believe the decisions from policymakers easier some way in the u. S. Versus europe, because in europe you have to have some agreement. Damage is not as it could be in terms of education and fiscal stimulus, whereas in the u. S. If they decide on something, it gets a better chance of being done. Ofmulus is a key component what will happen in the second half of this year. In our view, that is the main focus. Or should be the main focus. Matt in that case do you think u. S. Investment should be the m