That plays how throughout the afternoon, but it is certainly cassidy a pallor certainly casting a pallor over these markets. The stoxx 600 down more than 3 . All of the major indices, from the docks to the ftse 100 to the 3 . 40 down more than group just one stock 3i group just one of the stocks bucking the trend, up more than 5 . Prudential, the insurer, down 8 . It says it will be a difficult Second Quarter. We will speak with another insurer headquartered out of london little later on, the lloyds of london Ceo John Neal about difficulties for ensuring markets in this environment. That is all to come in the next two hours. Lets get back now to the u. S. Initial jobless claims coming in at 2. 9 8 million last week, topping initial estimates. That brings the total now to 36. 5 million since the coronavirus pandemic began shutting down businesses midmarch. Lets get to our guest, who also has a focus on latin america. We are speaking with catherine rivera, bulltick with kathryn ofney vera, bulltick Head Research and strategy. Kathryn from a market , we think the tide will begin to turn towards fundamentals if and when the market is discounting, but a fantastically quick resolution to the crisis is not realized. The risk that we run is that this is not a vshaped recovery, but a w shaped recovery, which means we reopen, and there is either a mutated version of this crisis or we get a second bout in the latter half of this year, causing another closure of the economy. I think that is the primary risk at this point. We are off a couple points, but i think we are way too overbought in the equity markets, so we are recommending our clients to start to realize profits and outright sale of risk assets, moving into cash. Vonnie that is fascinating. What about the president s comments regarding china . Is that narrative going to come back into the market . If so, will we hold onto the gains we have made . Kathryn i think certainly, one should expect both the democratic candidate and the incumbent president to speak in populist tones and go aggressively, at least in verbal form, with regards to china. The polling showing that there ,s some ill will towards china and the voting population would like to hear something in that sense. I expect more of it to come, and i expected from both sides. Anhink you are going to see increasingly populist wave come to the fore from the politics side, given that you have both monetary and fiscal stimulus in the markets, making the rich theres 36. 5 Million People looking for Unemployment Benefits and the labor force really bleeding. I think that divergence in fortunes is going to cause populism to actually continue its trend stronger. Vonnie so you are recommending that people trim positions. What should they do, just build up a bulwark of cash . Kathryn as the market moves towards record highs, 12, 14 points off of record highs, which is shocking given that we are in a recession, or in the worst case scenario, a depression. Looking ahead, we are looking at put option strategies. We are looking at option contracts with longer expirys, just to hedge the risk associated with the election and further political risks. Rebalancing to fixed income if we get closer to record highs, but i am expecting a downdraft here. I think the only thing that can keep the markets going higher is the fed buying more, potential he different types of assets, even finding ways to buy alternative asset classes, a vaccine announced, or the economy successfully reopens, all of which i think are tall orders. Vonnie i want to get to latin america. You focused quite strongly on countries like mexico. We are anticipating another cut later on, perhaps 25 basis points, more even potentially. If latin americas secondbiggest economy is seeing a spike in rates of coronavirus, what do you do about mexico and mexican investments right now . Kathryn mexico is in dire straits. We think mexico will probably have an lshaped recovery. See a contraction near 10 of gdp. All of this is being priced into the market. You can see the mexican peso has been severely beaten up. We do anticipate a downgrade this year the rating category, putting serious pressure on Industries Like tourism, entertainment, construction, and the value. Ting mexico and brazil will probably the worst hit, given the governments in both countries. They were very delayed in the response. The mexican stimuli has been so paltry that there is nothing to even discuss. Theres been no fiscal expenditure to speak of. Mexico is almost becoming known as the fiscal hawk of the region because of the lack of spending. Vonnie there had been a pilot in to latin american bonds a pile in to latin american bonds. Happens now . Mexico specifically, maybe brazil, are they investable . Kathryn i think if you expect a downdraft and aversion to risk coming in the next couple of months, you dont want to be investing right now. Liquidity has improved drastically in the past few weeks. Prices have bounced back to levels that we deem expensive, so we think it is a great opportunity to sell those bonds that expose volatility and and for, raise cash, further opportunities in coming months. Is 0. 6 the mexican peso weaker before that potential rate cut later on today. Our thanks to catherine rivera, bulltick to Kathryn Rooney vera, bulltick head of research and strategy. Lets get the first word news. Heres ritika gupta. Ritika President Trump once again expressing his displeasure with china. He says he is looking at chinese firms listed on the New York Stock Exchange or nasdaq that dont follow u. S. Accounting rules. No word what is meant by looking at. Meanwhile, President Trump also told fox he wont renegotiate his so called phase i trade deal with china, despite china falling short of agreement to buy more u. S. Exports. Earlier this month, the Chinese Communist party publication said beijing was considering negotiating the deal or canceling it altogether. Fbi has reportedly seized the mobile phone of the chair of the Senate Intelligence committee, richard burr. Other senators sold holdings earlier this year after a closeddoor briefing on the threat of the coronavirus. His office has denied any wrongdoing. The International Energy agency sees the oil market improving. The iea says demand is a little stronger than expected. Meanwhile, supply has been reined in by a brutal price crash. Oil production is set to decline this month to the lowest level in nine years. 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. Im ritika gupta. This is bloomberg. Vonnie thank you. Coming up, we are going to head to washington, d. C. More on President Trumps latest digs at china. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is bloomberg markets. Lets get a deep dive into market action. His kailey leinz. Kailey we are looking at losses for about 1. 5 for the major averages in the u. S. , more like 3 in the european session. You have ongoing concern about the economy following Jerome Powells comments and nearly 3 million jobless claims in the u. S. , plus concerning commentary from u. S. In regard to china, and many bigname investors saying stock valuations are too high at this point. The Kbw Bank Index is lower for a fourth day. For equities more broadly, it is the third down day for the s p 500 yet we havent seen three days of losses on that index since early march. The index is down nearly 5 over the last three sessions, putting us on pace for the worst week in nearly three months. What is interesting is a lot of investors maybe saw this coming. Week, they pulled a 16 billion out of the market. That is the most since march and the third most since august. It really underscores the how this isd shifting in more they a risk off direction. Norwegian is lower by about 8. 5 percent after reporting firstquarter results. Carnival sinking after reporting job losses and salary cuts. United down about 10 , in part because of a lawsuit related to federal virus funding. Broadly weighing on travel stocks today is comments from President Trump, who told foxbusiness this morning that a return to International Travel will take a little while area a little while. Vonnie thank you for that. President trump taking another jab at china, saying he is looking at Chinese Companies that trade on the New York Stock Exchange and the nasdaq, but do not follow u. S. Accounting rules. Lets bring in bloombergs chief washington correspondent kevin cirilli. Before he got to the companies on the exchanges, he mentioned that he doesnt particularly feel like talking to xi jinping right now. He didnt mention if that would even be a possibility, but clearly he is poking the bear a little bit again. Kevin President Trump dramatically increasing his rhetoric against chinese president xi jinping as the broader Nonpartisan Coalition has emerged in congress. Several proposals to try to disentangle the u. S. Relationship from china. I was at the state department earlier this week. I spoke with the undersecretary for economic affairs. What he had to say was essentially, if you look at this china issue, this is probably the most unifying partisan issue ever. Everybody has a passion for that. It is chinese doctrine. Ands to do with money retaliation. Vonnie wait, whats that, kevin . Kevin i was at the state department earlier this week, and i interview to the undersecretary for economic affairs. What he had to say essentially was that this is a nonpartisan issue in congress. Vonnie right. So what does that mean . First of all, that his rhetoric from the administration, right . But what can congress do at this point the president ial level, if there are no negotiations taking place below that . Kevin i think that is part of the broader strategy. Joe bidens senior policy advisor gave an interview to reuters earlier this week, and they actually said that bidens campaign is going to be releasing a proposal of their own for how the Biden Administration would handle china, and what they plan to do is criticize trump for being too soft on china. So the broader take away if you are outside of the beltway, trying to figure out exact the what this means for u. S. Policy, u. S. Policy is trending in a much more aggressive approach against the Chinese Communist party. In addition to that, i have spoken with several democrats over the past several weeks who are saying they are willing to work with republicans to try to disentangle some of the financial ties that the u. S. Has with china as it relates to higher education, the Financial Services sector, and the Energy Sector as well. The state department has reupdate policy to try to build International Standards with european allies to try to get them on the same page with the United States as it relates to that disentanglement. The a domestic perspective, u. S. Is trying to diversify its supply chain from china, and from an International Geopolitical standpoint, the u. S. Is trying to bring back on board europe to try to do the exact same thing. And trade negotiations with britain ongoing, as well. Backed elon musks decisions to go against local authorities do not reopen plants. He is definitely backing they reopen america since at this point. How does it play for him down the road when he is looking to get reelected, given that we have unemployment so high now . Another 2. 9 million applying for initial jobless claims. Is a perfect illustration of where republicans and the conservative movement is in terms of reopening the economy. The president saying he supports elon musks rhetoric, and saying that he could move that plant to texas, a state that has been much more aggressive in terms of its reopening strategy. I was on capitol hill yesterday and spoke with congressman jim jordan, a republican from ohio. What he told me was that the democrat proposal for another round of economic stimulus is down on arrival. He said republicans are starting more aggressively to say that the best way to get out of this economic downturn is to reopen the economy and not just provide a blank check. The democrats i speak with say the complete opposite. They say there needs to be much more slowing in terms of reopening the economy in order to provide health relief, but that because of that, then needs to be urgent Economic Relief for all americans, particularly those who are underserved. Vonnie kevin, thank you for joining us today. That is bloomberg chief washington correspondent kevin cirilli. Still ahead, i will speak with lloyds of london Ceo John Neal about how they are hindering how they are handling payouts during the pandemic. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is bloomberg markets. Says firstquarter results benefited from significant volumes, but also from acquisitions made in previous years. He is speaking exclusively with bloombergs matt miller and anna edwards. You may have seen early plunged 55 ,nues net profits by plus 75 . So clearly, q1 benefited from significant volumes and volatility, but i should growth nothat 50 of for volumes, but for the contributions of acquisitions made in the previous year, and clearly the diversification of a results,ds impact on then the contribution of volumes and volatility. So that is for q1. As i indicated earlier, the month of april has been a bit slower clearly then march. But significantly higher than in april. Does that mean you expect growth to level off . If half of that came from acquisitions, does growth then level off through the end of the year, or do you continue to make acquisitions to keep that kind of growth up . No, actually, we have recently made an acquisition in that market, which is the Central Depository of denmark. This should close in july. We signed this deal in the middle of the pandemic, and we continue to hunt for acquisitions, and acquisitions will continue to be a fundamental part of the growth of the company. Even the volume driven part of euronext, market share has increased. Volumes and volatility were good for everyone. Captured those volumes in her enough in terms of to capture massive doumes in march, and also to sophisticated yield management and to increase market share, and also something which is very ebita has grown more than revenues. Combination of volumes and volatility, strong yield management with resilient investment in technology, plus diversification of the top line, that makes good results of this quarter. Can i ask you about the working from home impact on a business such as euronext . Have you managed to work through the issues that might have thrown up . What percentage of people do you still have outside the office and expect to keep outside the office . Initially during the coordinated or quasicoordinated lockdown across europe, we had 98 of employees working from ,ome, and the peak volatility we had an operational stress test the month of march with high volumes. Everybody working from home. I dont expect to make euronext a Cloud Company where everyone will work from home and every employee will become a selfemployed consultant working from his dining room. Going forward, we will come back to some form of working from the office. Extse that was euron ceo. Still ahead, the Insurance Market area i will speak with john neal of lloyds of london. Prudential down today, the worst performer in the ftse 100, down about 8 at the moment. Lots of comments to point to the fact that it is a very negative environment for the insurers right now. Heres where we are in the United States. The 10 year 1. 3 , yield at 61 basis points, and a stronger dollar. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is bloomberg markets. Insurance market lloyds of london is warning of historic losses due to covid19, saying it is on par with 9 11, and payouts could further swell lockdowns continue. We are joined by john neal, lloyds of london ceo. A tough time for the Insurance Market. I am curious as to what your forecast breaks down too. You are talking about 200 billion losses for the industry come but that is underwriting as well as investment losses. Can you break us down for us canada can you break it down for us . We have released our lost estimates, but also estimated what we think the cost of covid19 is for the Insurance Industry globally. Aut breakdown really into 100 billion that we think will be paid out over time in claims. That is the Immediate Impact of , and then the inflationary impact on claims in the future. The asset value of those investments has fallen by about 100 billion. All of this could be a 200 billion loss, which, as you said in your introduction, dwarfs 9 11 or katrina or harvey. Vonnie will it be a big event for the industry . Just pointing out in the last while that the industry is backed by Something Like 2 trillion of regulatory capital, so the industry should be able to withstand this pretty easily, no . John without a doubt. I think the industry is solvent. The Capital Holdings of the industry are significantly above their minimum requirements. We are in excess of 200 . Theres no doubting the industrys ability to pay the claims, but it is a significant earnings event for everyone. Vonnie it is also broken up into the various categories. So event cancellations are about 1 3 of the cancellations. John about 70 of the losses up around 4. 3ill be billion, 70 in three categories. One is event cate