If you look at it, it is more of a financial thing than an Oil Situation. Airlines stock go into descent. Problems for peugeot expecting to see the european car market shrink this year. Lse outperforms. Also reaffirming the final dividend and will complete the 37 billion refinitiv deal in the second half. President trump issues an executive order suspending all immigration into the United States to, quote, fight the invisible pandemic and to save american jobs. Well documecome to street. Lets get to the top stories of the today, which is energy markets. U. S. Crude turns negative for the First Time Ever. Siting the strain on storage looking at minus 2. 08 falling 30 , yesterday settling over minus 37 a barrel. That means producers would pay traders to take oil off their hands. Amid widespread lockdowns amid an output cut among opec have not yet taken effect uta trading around 20 a barrel. Clearly holding out much better than the may contract. Big questions remain over whether we could see the same thing happen when it comes to the june contract. A lot of what could happen is to do with Storage Capacity issues in the United States that could certainly resurface as we look into the month of june looking at that contract, tradi trading per barrel President Trump said he will bit a cut for oil and suggested his government would help stockpile crude. He downplayed calling it a financial squeeze. If you look a month into the future, i think it is at 25 or 28 a barrel a lot of people got caught they got caught and there are a lot of people that are not too happy because they got caught. If you take a look, youll see it is more of a financial thing than an Oil Situation but because you take, i believe, in a month or so and go a little out, it is at 25 and 28 a barrel it is largely a financial squeeze. Youve got a look at the European Oil Majors which are coming under pressure on the back of yesterdays historic plunge bp down, shell down. We are bouncing off the lows we were seeing earlier this morning. Overall the equity markets taking the news in stride as they try to understand what this means for future oil prices. Lets bring in our first guest of the show, mark mobius, he joins us now with geoff and steve. Thank you for being with us this morning. First off, your take on markets broadly. We obviously have seen markets bounce off the lows in late march. Have we seen the bottom or are we vulnerable to another major dip . Caller i think well see another dip as we normally do in these situations because this has traveled very, very fast i would expect that. One of the legs ive been buying in this market because there are so many bargains to be had the most interesting thing is the price of oil in those countries like india, china. Those that are importing oil it is wonderful news. Although it is bad for the oil business mark, you said youve been buying and you mention china there. Can you give us deeper insight as what you think is in china, Greater China that is attractive over the medium to longer term most attractive right now is those countries able to serve the internet traffic telecoms, Internet Companies providing Services Also companies that have been able to grasp the importance of being on the internet and serving customers on the internet, that would be one good area to be in. One of the Consumer Companies again, that has adapted their delivery and online ordering should be well Going Forward it is a lot about the internet and how companies are adjusting to this. It is Going Forward, the use of the internet in buying and selling. This is very important for development of the asian market particularly mark, what has got to happen for the developed markets to look for attractive either in the pandemic crisis or the epidemic response as to valuations to the bottom or to look attractive at current levels caller from ipa, ive been buying some of the blue chips because they are so attractive at these levels. They could be downturned theyve come down more than the developed countries. One is a very nice period to be able to buy. That doesnt mean you put everything into the market at once im saving some cash reserve mark, i want to hone in on merging markets. I know this is an area of expertise for you. The g20 came out with a decision to try to support emerging economies with debt release through the end of the year. Some have criticized this move saying this isnt the best way forward. Each country should be treated differently. What do you think of this in terms of support is this uniform relief going to serve them and then in turn serve investors like yourself . Caller there is no question, there should be differences between these countries. Very important the difference between those ready to inform and those who are not. The money should be going to those who are ready to inform and embark on the infrastructure programs ive been projecting these in a big deal spending on infrastructure which will last for years and years and do very good work. That is a conditionality is a dirty word because they dont want to have conditions attached to the loan. I think there should be strong conditionality in that sense mark, weve seen emerging currency since this crisis began. Obviously, investors dont want to get caught holding the baby if we see this evolving to a credit crisis and then an issue that causes even further weakness that runs on these. How do you protect yourself based on what weve seen in the past maybe like the 97, asian crisis weve been dealing with projections on these i was surprised to find that these were not that dramatic we dont expect huge changes the good news is that the Asian Financial crisis a lot of these opened up the markets so that the market could find the level in each of these countries. We dont expect huge drops in these countries. We say, okay, on that change you think that is the account and we look at the earnings to see these earnings can account and make up for the loss in their salaries mark, the u. S. President is having his Worst Nightmare economically do you think the political pressure on mr. Trump as we get closer to the u. S. Election is more dangerous in terms of what his reactions could be to events yes, i think it is a very difficult time for him i know he wants to get the economy going again but i think the important thing is for him to cam up with an infrastructure program. Something that is a new deal that puts the economy on a strong lane Going Forward. The infrastructure in american is terrible. It is a great opportunity. Mark, i want to come on to the supply chain risk. This crisis has shed light on the Global Supply chain. Incredibly integrated and we have seen a lot of sectors show their vulnerability on the likes of india and china how are you thinking about the role in shaping future supply chains how does that affect markets you think are interesting . Caller s th thats a very important point. A lot of these buyers and people that depend on china are having second thoughts and diversifying their supply they want the supply chain to be closer to home in the u. S. , of course, the u. S. Company or mexico or canada. At the end of the day, i think there will be a diversification of the supply chain moving into places like vietnam, bangladesh and others so that these companies can have a more diversified supply chain i think that will happen all over certainly a theme to be aware of as we move forward. Thank you for being with us, mark and geoff and steve as well lets check on european markets which have been open just over an hour. With ewe are seeing red across the board there. The dax down nearly 1. 9 the cac 40 also under pressure under 2 we are reacting to historic selloff in wti prices. The june Contract Holding better than the may contract. Nevertheless, shedding some light on what that means for broader markets. In terms of sectors, we are seeing every sector in negative territory. Lets look at u. S. Futures yesterday was a down day wall street broke a twoday win streak all sectors were negative. As you can see there, we are looking at that weakness to continue today the dow looking at about a 2 drop s p 500 and nasdaq looking at a less severe drop lets push on. We got some earnings coming through. We got focus not only in europe but out of china we have huawei results coming through. Let me break down those numbers for you. Q1 Revenue Growth slowing because of the coronavirus and the blacklisting of the firm reported in terms of margins profit margin has fallen from 7. 3 from 8 a year earlier. We are looking at 25. 7 billion from 26. 8 billion last year this is in the face of both entity list and coronavirus. Lets see if that is true a towardi cording cording to our reporting last year, huawei was looking on yearonyear growth of 2020 i was reporting on the full year performance for full year in 2019 they told me they had a 12 billion shortfall because of being put on that black list that had a big impact. Coming forward, youve got that and now the issue of the Global Pandemic which is hitting the company too. If you think about china in the First Quarter, it was shut for a large part of the First Quarter. That his hit consumer appetite Telecom Companies not continuing their 5g roll outplaout plans o least pausing them the rest of the world now hitting demand for huawei products interpret feeling the effects now. It is not just the trade war and effects from last year, you are now seeing the double whammy with the pandemic. The outlook is some what bleak you likely see huawei double down and focus on the domestic market in china to see sales here as the economy reopens and they hope to see consumers go out and buy their products the question is what will spending be like the rest of the year the bigger question is what happens to its business in the rest of the world as the globe tries to contain the fallout from this pandemic thank you arjun, joining us from china we will take a quick break psa warns of a sharp downturn this year in the Auto Industry we look at the numbers next. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. Welcome back to street signs. The u. S. Treasury has bumped almost 3 billion into the Airline Industry they will release 25 billion earmarked to paying wages of employees. The Airlines Says the initial batch was divided between two major peaceninger airlines and 54 smaller carriers. A bit of pressure coming together with iag, lufthansa and easy jet trading lower ryanair as well. Air france klm down, wizz air bucking the trend. More coming out of australia that no doubt highlighting the vulnerabilities across airlines. Virg Virgin Australia has gone into voluntary administration the airlined buckled under a 5 billion debt burden. It reached out to creditors trying to recap recap tallized the business offering his home as collateral. Reporting the treasury told the carrier to resubmit its bid having been unempressed with its application. Leaving the airlines now to danone that withdrew guidance. Adding that the Second Quarter will be deeply hit the French Food Company did post higher First Quarter sales citing consumption to the imposed lockdown psa reported a 15. 6 decline. Shares there trading about 2. 4 lower this morning lets get to Charlotte Reed with more despite the relatively grim outlook for the sector and company, theyve maintained their margin targets you are right the results for psa are a little better than expected revenue down 15. 6 that is on the back of the european enrollment with administration in march down we know psa has a huge exposure to europe. They said the current environment they have secured extra liquidity and cut costs which would allow them to maintain the margin. This was about 8 in 2019. They gave forecast for the rest of the year. Theyve seen markets down 20 in europe, china and latin america and russia at the moment, it is too difficult to assess the actual impact and scale they are preparing to rebound in a chaotic economic environment a question of how soon psa can start activity again all of the factories have been shut down. They have new measures there what speed they can start and the supply chain impact. The concern of small and Media Companies that could have collapsed the lockdown and what could be the supply for psa. Announcing the dividend. One of the big shows for psa has been to hold on to cash and avoid paying dividend. Another question of course is a special dividend of fca, the 5. 5 euros under the tiup with the psa and fca. Can these go ahead although the terms of the merger to be negotiated the psa management is having a call with investors in about 10 minutes. A lot of the focus will be is that Pandemic Impact a lot of the tie up with psa . At the moment, this is sending shares down this morning no doubt that creates a difficult situation. Thank you for running through that London Stock Exchange shares are up after posting a rise for the First Quarter on the back of higher equity trading. The lse says it remains committed to the takeover of refinitiv. Still too early to estimate the impact of the virus on its operations in germany, Software Giant sap showed results of a quarterly profit up 1 saying it will decline in the Second Quarter but expects improvement in the Third Quarter as governments start to lift the lockdowns. Getting out to annetta because of the decisions in terms of who is leading that company. Theyve aborted the coceo role. Caller thats right. They have announced that Jennifer Morgan is going to leave the company after only six months in that coceo structure. They have said they need a more decisive structure given the environment. Nobody really expected that it would last forever but just six months, it is raising eyebrows nobody understands why Jennifer Morgan has to leave the company at the end of the month. Thats one thing the other is that numbers are quite solid at the end of the quarter dispute the outbreak of the coronavirus. We are seeing that already in china. The numbers are quite weak but the cfo today was saying the order back log for the end of march was quite good so there might be some silver lining. To explain it, sap has a very stable Business Model with the Cloud Business, which is even growing in the crisis. People might move more to digital or to the Cloud Business as part of that business is that the revenues as they are reassessing and saying operating cash flow will be only 5 billion also why shares are lower. To sum it up, the business seems to be quite solid. Sap saying Second Quarter will be worse they are expecting some improvement in the third and Fourth Quarter with economies going back to the new normality. At the same time, they are stream lining management to one ceo. The cofounder and chairman of sap is saying he has complete confidence in christian. Hes still a very young man for leading europes Biggest Technology company hes only 38 or 39 he has a very clear endorsement by the founder they are confident to meet also their 2023 target. All in all, it looks okay. Back to you. Thank you for flushing that out for us no doubt those joint ceo structures are tricky. Still ahead, we speak to Group Advisor at vodafone. Thats coming up after the break. A warm welcome back to street signs. Im Julianna Tatelbaum these are your Headlines Oil majors slump after oil is negative for the First Time EverPresident Trump said he could brock saudi imports and build upsta u state reserves a lot of people got caught. It is more of a financial thing than an Oil Situation. Airline stocks go into descent. The u. S. Treasury releases almost 3 billion in support of the industrial ibm abandons guidance as coronavirus clouds the outlook ahead of the first big tech earnings released today. Huawei reports a slight slow down in firstquarter growth saying its business is resilient after reporting 90 new commercial 5g contracts. Lets take a look at the wall street futures market what we are poised to see at the u. S. Open. We have red across the board the dow looking to open about 260 points lower the s p 500 and nasdaq also poised to a lower open a major industry broke a twoday win streak energy, the key focal point for markets with that may wti contract falling into negative territory for the First Time Ever lets push on to european markets in the session weve come together with this morning. Seeing red across the board in europe as well the dax is down 2 we are seeing negative turn down italy and the uk coming under pressure in addition to what is going on investors with a raft of earnings across autos, to consumer to tech to financial. This is all ahead of the thursday Council Meeting where we will look to see if leaders can agree on a new way forward when p it comes to policy support. Looking at wti we are seeing wti bouncing off the lows still negative territory we saw that contract slip to mi minus 40 a barrel Brent Holding out much better around 22 a barrel. Worth noting further out on the wti curve, we are seeing stronger trade as well lets look at oil majors in europe and what reaction has been bp and shell trading around 3 a piece. Overall Energy Sector is coming under pressure as investors try to determine whether we could see the same thing occur for the june contract in early days at this point the ceo for a Dutch Oil Company told us how his company is dealing caller our strategy has worked we have a strong portfolio across liquidity 30 are oil related, 60 are industrial related we have high contracts with customers there to supply more of the needs in nature we were not dependent of it. This Market Structure is seen as a support of our earnings. Earnings season is in full swing with dozens of Companies Reporting the First Quarter numbers expected to show the initial impact netflix, Lockheed Martin and cocacola all report later today. Tensions turn to u. S. Drug makers with eli lily and more reporting. As well as tesla, verizon and at t expected to report. Netflix expected to see a boom in subscriptions. Netflix shares up 35 year to date ahead of earnings coming tuesday afternoon. On expectations that the streaming giant will report a surge in subscriptions as lower churn as americans are sheltering in home and around the world. The key number is subscribers which Analysts Expect to be 1 million higher than forecast last quarter expected to grow 116 . On the companys earnings call, we are listening for guidance from the ceo, discussing price hikes and how much they plan to invest in content Going Forward. Reporting for cnbc Business News los angeles. Bringing in our next guest from vodafone. He says theyve seen six months of growth in the last four weeks alone. Well get into that as well. Geoff will also join the conversation thank you for being with us. A major spike in usage we are all spending so much more time at home give us the sense of magnitude of increase but how it is distributed across europe. Good morning. Thank you for having me. It has been an exciting and hard working february and march for us i still remember getting your phone call during lunch on friday, february 21 saying we have a contract that tested positive for coronavirus we started grinding like crazy on that friday we have more or less been seeing six months forecast of demand materializing overnight. Across europe, we have seen a growth of 40 to 60 . On the mobil side, it has been around 15. In spain and italy, we are seeing up to 30 to date in traffic. Voice in some countries we are seeing 40 to 50 and up to 100 of traffic growth. Overall, these are important for numbers. We have around a fifth of the worlds internet traffic when those changes happen more or less overnight, they would try to manage with growth. An enormous task and everybody appreciates having the growth when they need it i know you are offering the data to vulnerable groups it begs the question how well you will be able to monday ties. Give us a sense of how you can take advantage of this as a company. Our key priority has been to make sh make sure the customers have the business it is really important connectivity are working we want all our employees working from home and operating the network from europe from about 1,000 households we have been giving free Data Services to Health Care Workers and vulnerable people, extra we have been providing a lot of services to enterprise customers. We have a huge demand coming up. Companies that need to be more capacity working from home we have a lot of government, health care systems. One example, we had a customer at lunch time call say we have a huge call on monday morning. Now we are getting all across the week they are up and running. Lets see where they are translating. Key priorities to make sure they are staying safe and making sure they get the good service. There has been this incredibly ignorant view that 5g is somehow connected to coronavirus, which of course is nonsense but it hasnt stopped people from people hassling has this impacted your ability to roll out your own 5g an tenia because of this stupid rumor it is really the worst time of fake news i am really sad about it as you say, there is absolutely no evidence connecting 5g with coronavirus. Yesterday, we had 24 masks burnt down it is really terrible. People wanting to call their loved ones they cant do that some ignorant people have been doing this really bad terrorists we have threats on our engineers. We still have some installing fixed broadband with consumers and customers. We have engineers out there repairing connectivity to hospitals. Some of them have been attacked. Those are really terrible when we are trying to provide a Great Service so people can community and then they get attacked im really grateful for support from the government and the police they are treating this as a terrorist incident can i ask you then, in connection with maintaining the network. Given that you have this high usage rate at the moment you are under pressure to maintain current capacity. Is that limiting any work you would be doing at this stage for future expansion like rolling out further 5g antenai we could do fast increased capacity, we have done them mainly during march. I have to say our networks are operating flawlessly we have had huge spikes in africa where we have seen 25 to 50 growth we are moving our focus to what is happening the rest of the year to plan for that. We have continued to expand and increase capacity and coverage we will continue to deploy 5g. Well see if we need to do some adjustments that depend on the climate. We are continuing on our investment for now thank you for joining us. We appreciate all the work the engineers are doing to keep us all going when it comes to this data we are consuming. Shares in ibm fell in extended trade after the giant failed to meet First Quarter expectations it blamed the slump on clients shifting priorities due to the outbreak Cloud Service surged almost 50 . Saying the companys cloud offering is said to only grow further as working remotely is due to become more common place. Saying that Business Companies were wellplaced as the world races to be more digital caller when you look at many of the projects, you went back to Application Modernization driven by hybrid cloud you talk Artificial Intelligence as the world wants to get digital and get digital faster even in this crisis days of covid19 i would say this is a big chance the portfolio we have selected should make us more robust than many others. Coming up, fresh data reveals the full scale of the Virus Outbreak here in the uk. Well discuss that next. I know that every single time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. 58 million latinos live in the United States. If we all participate in the 2020 census, we can ensure fair funding for our schools, libraries, hospitals, and other public services. The census is safe, its confidential, and our community is counting on us to do our part. We know who we are and how vibrant our community is. Lets make sure our nation knows it too. For more information, say census 2020 into your x1 voice remote, and to participate, go to census. Gov. Welcome back to street signs. President trump says he will temporarily suspend immigration into the United States he used twitter to announce that he will sign the executive order. Nearly 22 million u. S. Citizens have claimed unemployment. White house officials have offered few details but an administrator told nbc news the move had been under consideration for a while. So watch this space. In the uk, coronavirusrelated deaths were 41 higher for figures for the week of april 10 according to new data this is fresh data just out. Reporting over 50 of deaths reported in london during the same period involved covid19. Over 1 Million People have been placed on leave in the uk over 140,000 companies have applied to the job furlough scheme showing jobs in the uk slowed in march ahead of the Government Shutdown which began on march 23 my next guest has coauthored a paper of a traffic light strategy that is paul ormerod, joining us now from london. Steve will also join us. This traffic light system gained a lot of attention over the weekend. Can this even begin to be implemented before we have more Testing Available . Caller yes i think it can be. Sorry you mentioned the death data earlier whether you use the department of Health Figures or National Statistic figures. The death rate here and across europe peaked in early april we know it is exporting to 21 days from infection to death the clear message is, the virus, the new cases in the uk and europe peaked in the middle of march. The level of infection now, the number of new cases is very low. We can think about beginning to unlock the economy professor, in terms of the dialogue from the government, many people have been dismayed by Gavin Williams and others refusing to enter into any dialogue about the end of the lockdown what do you think the government should be doing in terms of keeping the public inside . I feel like most people do. Very sim pa thetic they are in an unprecedented situation. They are all going to make mistakes in these circumstances. I do feel increasingly its government needs to give a bit of a lead. They dont need a detailed plan but they need to give the population hope. The british people have behaved very responsibly and sensibly. For example, the week before legal lockdown came, it was a voluntary one. Most people complied with that voluntarily. Something the government does need to start leveling with and giving some indication of what that thinking is havent they straight jacketed themselves and come out with the five criteria they have to pass or think are achievable to start the end of the lockdown one of them is the steady supply of ppe and facilities that National Health services need and clearly matt hancock is getting nowhere near and ppe is becoming a saga and a tragic one for frontline workers theyve straight jacketed by not being able to provide what they thought they could provide governments often set targets when they think they can be met. There was a debate when britain was looking to join another currency of these five tests, by early or middle of may, four of them will be passed easily and the warm weather also will impact the supply of ppe. There must be some increase in supply that could be finessed by politicians. The other four within three to four weeks time will be met comfortably. I see hear the green phased of the traffic light system you proposed begins june 13. We heard today germany has cancel canceled octoberfest the last thing we think should be open and we revised our outlook. And for sure, Mass Gatherings are impacting the sprefad we have to say, maybe Opening Premier League football to spectators will have to wait until the autumn we appreciate you joining us. Visiting professor of computer science, london college. Lets get our last check of wti before we hand you over to our u. S. Colleagues. Yesterday, the main contract plungingto negative territory for the First Time Ever due to Storage Capacity concerns. You can see we have bounced off those lows still in negative territory minus. 76 a barrel Brent Holding out better around 21. 94 wall street looking at a weaker day today compared to last week. That is it for todays show. Im Julianna TatelbaumWorldwide Exchange is up next. No tuesday turnaround here stocks look to erase fridays nearly 700point gain for the dow. Oil bounces back after an historic slide well speak to one insider with millions on the line her take on what it means for the global oil market. Firsk