Surgeons as the daily virus death toll drops. We get pmis from across the region throughout the program. Fragile sentiment. Stocks fall amid political sparring between the u. S. And china. President trump promises a conclusive report following allegations the coronavirus began in a wuhan lab. This crisis is different. Warren buffett explains why he has not put his record cap trial to work as companies clamor for liquidity. Futures equity markets, to the downside. Matt miller is with us from berlin. Futures suggest we will see some weakness at the start of trade. Matt absolutely. We are looking at euro stoxx 50 daxres down 3. 5 , as our futures. Ftse futures trading down. 5 . Nonetheless, in the red this morning. If you look at u. S. Futures, you red as well. U. S. Futures down about 1 across s p, dow jones, and nasdaq emini contracts so it does look like we are headed for a riskoff monday to kick off the week. Just under one hour away from the start of cash trade, as i said, and we expect, 58 minutes to go, and we expect it to be bad this morning, at least bad if you are long stocks. Good if you are short. Bloomberg first word news. Todays top stories for you. In the u. S. , President Donald Trump is raising the expected death toll. He now thinks as many as 100,000 americans could die from the coronavirus. He is also promising a conclusive report on the chinese origins of the pandemic. That is after comments from both the president and secretary of state, mike pompeo, that the virus started in a chinese lab. The Intelligence Community continues to do its work. They should continue to do that and verify so we are certain. There is a significant amount of evidence that this came from that laboratory in wuhan. Matt the daily death toll from the virus is falling from the u. K. To italy. That is as leaders across europe wrestle with how to use law and restrictions. Britain is not set to unwind its curves just yet as the government prepares guidance for the next deaths, including if employees need to where face masks and how public wear face masks and how public transport should be used. North and south korea have exchanged fire in the Demilitarized Zone for the first time in years. Seoul says the north fired several times at a guard post, followed by retaliation and a verbal warning. Deescalation comes a day after the north korean leaders first public appearance in 20 days. His absence prompted global speculation about his health. Berkshire hathaway struck any mega deals during the recent market volatility . This crisis is different, according to Warren Buffett. He says the company has not found any attractive yields to make with its record hundred 30 137 billion dollar cash pile, and he says once the fed stepped in, the opportunities became even less attractive. He made the comments at his annual shareholders meeting, held this year by webcast. 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. Anna . Anna matt, lets talk about whats going on in these markets with the markets life team live team. The riskoff move that has hit markets at the start of this month may have further to run. We more than 10 rally in world shares we saw in april is being tested into may as investors use lockdown restrictions against fears of a second wave of infections and dire economic data. Lets get to the markets with our managing editor in singapore, mark cudmore. Good morning to you. Adding into all of the things we are already concerned about, we have to add another beat of geopolitical tension between the u. S. And china. Is this something that is going to capture the markets thinking in the days ahead . Mark its definitely capturing the markets at the moment. We saw that on friday when we talk china and chinese rated asset most affected. Those are the ones who are affected by the news on friday that trump was looking to block a Government Pension Fund from investing in china. We have seen followup comments talking about mentioning the idea of tariffs again, and the last thing people need is that kind of trade work. There is a wholesome trade war. There is a whole selection of bad news. Amazon cannot make money. Lockdowns are being extended or at least restrictions are being eased a little bit slower than many people hoped. In march, trump was talking about easter as the day we would open the u. S. Again. There is a whole choice of bad news out there, but most of it was known already. This is a new element. There is nothing positive to focus on today. Matt what are you hearing from the question of the day on the mliv blog . You are asking how will the dollar react to u. S. China tensions. What kind of answers are you getting . Mark unfortunately, on this one, we have the game plan it in terms that we saw what happened that weplan in terms saw what happened. Part of the Dollar Strength last time we saw those trade tensions was around the fact that china would be more affected and therefore, the u. S. Would be more resilient, and u. S. Assets would be more resilient. More difficult this time. It is not that we will copy the exact game plan. Like always, markets i hate repeating this phrase markets rhyme. They dont repeat. They are a little bit more volatile, more uncertainty, but ultimately, more dollar negative this time around because the u. S. Economy is the one that is more vulnerable u. S. Assets are the ones that are much more overpriced. I think it is initially dollar positive intentions and then subsequently, it is dollar negative. Picture, the jobs does it tell that story . We are expecting to see the jobs report on friday, and expectations are for an like, ine drop, if you the level of job creation or increase in the level of job destruction we are going to see in the United States, a drop of historic proportions. Does this set europe apart from the u. S. , for better or worse, into the mediumterm . Mark i think the main way to view the jobs data at the end of this week from the u. S. Is that Financial Market participants are very well aware of whats happened. They have projected the numbers now. We have a good idea of where it is going to come in. The shock here might be how it is presented in the weekend news for the retail investor. One of the things of the last seems of the last themes of the last month or so is they have not been deterred by the coronavirus pair they bought the debt by the coronavirus. They bought the dip. Thiss been be contrary time. Retail has done well buying the dip and Financial Investors have been fighting the rally. This time, it might be this week that we kind of see those really scary headline employment numbers. It gets hammered home to the retail audience just how severe this economic depression is. If they start turning and selling out, that is the real scare for markets. Matt does that mean the rally that we saw in april, the rebound on the s p 500, and other indexes, is done here . Was that a bear market rally that is finished . Mark definitely, that is my view. That has been my view all along. A bear market rally. We are barely off those kind of highs from last week. Bers definitely will not celebrating until we are lower than here. It is interesting to note the bear market rally stopped exactly at the levels everyone was expecting. We talked about on the show a couple of weeks ago, we were saying 2900 was what we kind of assumed we would reach for the recovery rally. We got up to the 2950 level. Or just below there. And it has pulled back. Bers definitely will not celebrating because we are barely off those highs and we do not know where it will go, but we will certainly be encouraged by the price action. It will be bulls who will be nervous this week. Anna mark cudmore from our markets live team in singapore, managing editor of the bloomberg and live team. And remember, you can join in. How will the dollar react to u. S. China tensions . Plus tvt to us, i. B. We will talk about those u. S. China tensions next. President trump says he has little doubt that beijing misled the world on the scale and risk of the virus. We will have the latest, next. This is bloomberg. Matt welcome back to Bloomberg Markets european open. 47ht now, we are about minutes away from the start of cash trading across europe and in the u. K. We see futures are down, much more sharply, for continental indexes right now than they are for u. K. Ftse futures. Ftse futures down only. 4 percent, but 3. 5 on dax and cac futures. Bloomberg business flash you. Todays top corporate stories from the terminal, Warren Buffett has dumped his stake in the four largest u. S. Airlines. The billionaire investor remains deeply exposed to the collapse in air travel. Berkshire hathaway owns all of parts per they bought the company back in 2016 in a deal worth 37 billion. It faces lean times as clients of boeing and airbus cut production. Roche is the latest company to win emergency u. S. Approval for a coronavirus antibody test. It is promising to scale up the tool that policymakers hope will help reopen economies. This was they expect production to reach the high doubledigit millions by june. The test looks for antibodies in the blood that has been raised to fight off the virus that causes covid19. Lufthansa expects to reach a deal on German Government aid soon, according to a letter the company sent to employees. To help would be a decisive step to secure the airlines future and it would make it unlikely the carrier would need protection. The company says the aide is important to help flights resume as soon as possible he possible. Itswestpac is deferring dividend as profits plunged to a two decade low and bad loan provisions sore. It faces soar. It faces an antimoney laundering fine. The company says this is the most difficult result westpac has seen in many years. And that is your bloomberg is not . Business flash. Anna President Donald Trump raised the expected death toll in america from the virus to as many as 100,000. In a town hall on fox news, trump also promised at promised a conclusive report. He says he has little doubt that beijing has misled the world about the scale and the risk of the disease before it became a global pandemic. For more, lets go to beijing now, where Bloomberg Markets anchor Tom Mackenzie is standing by with the global coronavirus wrap. Bring us up to speed. Tom i will give you a wrap of the crucial moves we have seen across the world in terms of the efforts to tackle this virus. Global cases have passed 3. 5 million so you are looking at nearly 250,000 deaths but we have also seen, importantly, at least one million recoveries. Shifting focus to the u. S. , in particular, you have seen an increase in terms of cases of about 2. 3 . That is lower than daily increase, the average daily increase we saw last week, so that is seen as a positive. Total cases in the u. S. Now, by the way, 1. 1 5 million. You talked about trump raising 1. 15 million. Talk about trump raising the total. Current u. S. Test stand at 67,000. France reporting 130 five new cases in the past 24 hours or so. 135 newthe fewest cases or so in the past 24 hours. In hong kong, 14 Straight Days with no new infections, and in fact, the government is looking at plans to relax some of the social distancing measures and they may allow cinemas and gyms to reopen. On the therapeutic front, Gilead Sciences had the fda approval. It is expected, according to the ceo, to start getting the treatments to patients in the u. S. Potentially this week. Those comments from trump drew the focus earlier this week in this part of the world. Matt understandably so. I think they drew focus all around the world. Tom, thanks so much for joining us. Tom mackenzie joining us out of beijing. I want to bring you some breaking news on the airline industry. We were just talking about Deutsche Lufthansa saying it is poster receiving a state aid package. Air france has won e. U. Approval for a 7 billion euro french guarantee and loan, so air france winning approval from brussels for french government bailout. The french government will be a subordinated given a subordinated shareholder loan and a guarantee, this according to the European Commission, the European Commission sending out an email statement telling us exactly what is going on here with air france. Coming up, europes health check. We will get a reading on factory activity from across the region today. Will they follow asia and fall to historic lows . We will discuss, next. This is bloomberg. Matt welcome back to Bloomberg Markets european open. We are 40 minutes away from the start of cash trade, and you can see we are set up for a very negative day on the continent here in terms of futures. The ftse not looking so bad, but still down. 4 . Overover to the next the next two hours, we are going to start getting in april manufacturing pmi readings for the major eurozone economy. They are expected to show stark contractions as lockdowns continue to cross the continent. Joining us now to talk about this is the cio of abp invest. He is turning positive on the euro after two years of holding a negative outlook but i want to talk first about your view on the pmis. This is data that we know is going to be bad, right . Is it going to be able to move the market . I dont think so, matt. I think the market has been too exuberant, in my view, and over the last few weeks, the market assumed the policy support and fiscal easing will help economies recover to where they were. They were a few months ago and i do not believe this will be as easy as the market expects. This is why we are seeing a disconnect between the s p and the dax, if you like. Such asasset, currencies or commodities, which are a little bit more benign. I know that you have been picking one market versus other markets in europe in terms of the equity market story. Why is it that you like the dax more than the cac . Is it to do with handling of the crisis, local exposure . Global exposure . Thanos two reasons. One is the broader exposure, which the dax has, and secondly is the strength of the german position in terms of the prudence, if you would like, of over the last few years, has paid off. I was one of those pushing for the german policymakers to move away from that over the last sort of 12 to 18 months, and they have stuck with it, which puts the economy in a far better position. We have also seen not only from the economic but also from medical developments in terms of hospital care so i do believe that the dax is going to outperform the cac, but we in thee further weakness dax, cac, and s p. Matt what do you think about the euro in general . We are seeing some signs of solidarity out of europe right now but it certainly does not look like merkel and the germans are willing to move towards shared debt without a orstitutional rewrite ratification of a treaty rewrite, new ratification of that treaty. How likely does the euro survive this crisis . Some have suggested it is in a very bad place. Thanos i agree with you, matt. I do not expect any change, i dont believe, in initialization of the debt, whether it is coronavirus or any other. I think the e. U. Will be kicking the can down the road for as long as it can, and i do believe that there is a risk. However, i do believe this risk of a breakup of the euro, if you like, is imminent, because that would only come under an l scenario, in other words, under a scenario in which the coronavirus regenerates eight into second and third waves. We remain in negative territorys of Economic Growth for the next one year to two years, and as a result, governments focus much more on their national agendas. Now, that is under that scenario, i can certainly see the breakup, but i do not have that as a central case. I think this is a very small probability put on the side, but being aware of. Anna you dont think an l shape. A v, a ww . What a w . What kind of shape do you give it . Thanos from an economic point of view, i see it as a u, but from a market point of view, a w. This is my disconnect from the current development. I think the markets were too fast in revaluing and bringing backup rerallying. A mis that this is expectation of economic developments. I think the economy will take longer. You expect markets to fall for it i will give you one example, and that is the importance of the smaller companies, micro enterprises. They make up one third of all the workforce within the e. U. Unlike air france, which we just heard from matt getting some subsidy, who will help those micro Companies Come through . U. K. ,r it is in the e. U. , the accommodation and food industry, it will take longer acting for the economic think packed Economic Impact to come through in the markets were a little bit too complacent. And the markets were a little bit too complacent. Anna thanks very much for joining us, thanos papasavvas, the us this morning on European Market open. Easing the lockdown. We are hearing about that from the french finance minister, speaking on the mastic radio in france. Germany and italy domestic radio in france. Germany and italy. This is bloomberg. Matt welcome back to bloomberg market the european open. 30 minutes from the start of cash equity trading, we see much deeper drops in european futures than we do in u. K. Futures. Remember, the ftse already fell when all ofriday these other European Equity indexes were closed for the may 1 holiday. It looks like Continental Europe has a little catching up to do on the downside. As we help you navigate the coronavirus news cycle, lets look at key moments to watch for this week. Tomorrow, a policy decision from the reserve bank of australia. We will watch for any update on their economic outlook. Thursday, Boris Johnsons government is due to review lockdown measures in the u. K. While the bank of england makes a policy decision and we will end the week with the u. S. April jobs report. To reveal the sharpest deterioration in the u. S. Labor market since records so basically39, the biggest drop ever, at least since the great depression. Lockdown,months of european nations are finally starting to roll back the harsh