24 hours. Larry kudlow says todays jobless claims figures show a big increase. The bank of england seen throwing holding fire for now. We have the Senate Passed the stimulus bill. That seems to be priced into risk assets. The market very much seeming to shift its focus to no Inflection Point in case the death toll worldwide. Green on the screen on the Msci Asia Pacific index overnight, but i mixed picture below the surface. U. S. And european futures in the red. The 10 year yield slipping seven basis points. In terms of g10 against the dollar, you are seeing the end the best performer. Commodities under pressure. Oil under pressure after a 9 gain over the past three days. Goldman saying even a halt in the price war cannot save oil from a huge glut in terms of their commentary on the oil market. They are saying crude surplus could be 14 Million Barrels a day in the second quarter. To get back to the u. S. Senate, it has passed a 2 trillion Coronavirus Relief package. The approval has come after both parties move past a lastminute dispute over an of limit benefits for lowwage workers. The onus is on the house to pass the bill quickly and send it to President Trump for his signature. Joining us from new york is annmarie hordern. Great to have you with us. Point was to do with Unemployment Benefits to the tune of 600 dollars. Some concern this could encourage layoffs. How was that resolved . This is what the hold off was. Of goply, a Group Senators thought that 600 basically would mean employers to layive them incentive off workers and those that were laid off they said this would keep give them a reason to not seek work because that 600 for some people was more than they recent salaries. Secretary Steven Mnuchin said that is not the case. He said we need to keep a 600 cap because it is the most efficient way to get money to people in the system. If you start tailoring to someones recent salary, it is going to take longer. They were able to get over this hurdle but that was the big sticking point. Nejra yesterday we were light on the details. We have a lot of detail of the package now. An unprecedented package that dwarfs the hundred billion 800 billionus stimulus barack obama put in place. This is a massive package. The Energy Sector were not able money they wanted. We have individual workers, big corporations, farmers, everyone is mentioned, but the devil is in the details. There is significant oversight the democrats were asking for. Banning buybacks for airlines. If they want the money, the government has the option to take a stake in the company. Then we have small businesses. 350 billion in loans. Small businesses are bleeding cash. I cannot overestimate the pressure on small businesses. The Restaurant Industry alone, 7. 2 million workers. Theyhing that was a win, wanted cash injections and this finally gives cash directly to american citizens. This will mean specifically based on what wages you have, if you earn more than 99,000, you are not going to receive that check. Also 500 to individuals, to children. We have to say this is unprecedented, it is worth more than 2 trillion, yet everyone is saying it is not enough. Just yesterday new yorks state Governor Andrew Cuomo was saying it is a drop in the bucket in terms of the money going to new york, the epicenter of the pandemic. Economists are saying we could see on of limit rise. Unemployment rise. Many are saying it is unprecedented. Already chatter they are working on the next round. Anna annmarie hordern, thank you so much. Let us get back to the death toll. We mentioned what it is worldwide. Spains death toll has surpassed the official ticker from china becoming the second highest in the world. The number of deaths rose by more than 700, a daily record to nearly 3500. Madrid is the country worst affected. Catalonia has seen a rapid increase in cases. Maria tadeo is in brussels. What is worrying is if you compare the spain death toll to where italy was at this point. That is very concerning. It is very concerning. What you should look at is not as much the total number. The more you test, the more youre going to find. I would say the spanish curve looks very scary. The number of deaths in 24 hours, also the number of cases jumping in a single week. We have gone from 10,000 to 50,000 cases. By the end of the week youre going to be close to that 70,000 mark which would be a huge increase. The government is already prepping the country for that. Saying its going to be the most difficult week yet. We have entered the most difficult phase of the whole thing. When you look at the impact on the economy, this is happening in the capital, but it is also happening in catalonia, the economic hub for the country. Obviously this is going to hurt not just on a social level. This is also going to hurt on the economic level, devastating for the economy. Everyone knows we are headed to a recession. The question is how deep is it going to be and how are we going to deal with it . The bank of spain has taken an aggressive note on the need for stimulus on the international level. In terms of the policy response, ecb policy makers, bloomberg is reporting they are said to be in favor of activating outright monetary transactions, but is not necessary at this point given that the ppp they lost in response to the virus, there was conversations around adjusting capital keys to allow purchase of bonds from italy, for example. A thing thatt is takes us back to 2012. You mentioned the programs and ideas that have been floated. There is not just that. There is also the question mark here, there are countries that believe this is something brussels and the entire European Union should be thinking on in a way we have not done before to do it as a credit line, and those that would go a step further, there were letters that were signed yesterday by european leaders including emmanuel macron, saying lets keep thinking about the coronavirus. Way, i would point to mario draghi speaking, writing in the Financial Times yesterday saying there are three things we should talk about. The fact that we need to expect the level of debt is going to increase, we are going to have debt, andff private jobs are what matter the most. Thats what we should be protecting most of this point. Now let us get to the first word news. The World Health Organization has issued a rare public scolding. Its as governments need to stop wasting time needed to fight the coronavirus. The International Agencies chief says we have squandered the first window of opportunity to stop the outbreak, but we have a Second Chance as 150 countries have fewer than 100 reported cases, there is still time to prepare. In the u. K. , pressure is building on Boris Johnson over the lack of virus testing. The top medical advisors is the u. K. Must learn from other countries, warning of a National Health service overwhelmed by the pandemic. Capacity isting being hobbled by globally supply Global Supply bottlenecks. The bank of england is set for a third meeting next month, but it may be less dramatic. Policymakers have slashed Interest Rates to a record low. Is not in support of bringing the benchmark below zero. Its shieldxpand defending companies against hostile offers as the European Union has warned the economic slump may leave industries vulnerable. Rome is reviewing his powers with the idea of expanding the buffer beyond businesses deemed to be strategically important. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Coming up, germany unleashes a historic stimulus package. Our exclusive interview with the german finance minister. This is bloomberg. Bloomberg is daybreak europe. Risk off in the european session after the best two days of Global Equity since the financial crisis. A bit of pressure on commodity currencies. The yen is bid and oil coming up three days of gains. The reaction we are seeing in markets today seems to be investors looking past stimulus package we have just gotten passed by the senate overnight and turning attention back to the Health Crisis and the fact we are not seeing an Inflection Point in cases or the death toll. Is that a Fair Assessment of what is happening in treasury yields right now . Morning. Markets are very much dominated environmentisk off and what is happening in equities moving in the opposite direction today. Throughets are looking the u. S. Being the latest in a long line of governments taking more stimulus measures. The data we are beginning to see about the impacts the virus is having and the extent of the economic damage is really dominating and continuing to be a timely reminder. The stimulus packages are offering temporary relief. But we are continuing to hear companies are facing intense pressure. These packages are big. There is a question whether it is enough. Is the upward pressure on yields done for now . If the stimulus package priced in to treasuries . Seeing is a great deal of the yield ranges are huge. The other day when the stimulus package was going to be announced, that was a very supportive backdrop. You saw weakness in bonds. Broadly very much more that safe haven assets remained in a beneficial, positive environment. There is a though scope for yields to selloff in the near term. It is very, very limited. The Downside Risk is the growth and longterm inflation outlook. Very much skewed toward more Central Bank Stimulus and more Economic Risks to the downside. Speaking of Economic Risks to the downside, i have a look ahead to the jobless claims later today. A key number coming out from the u. S. We have had comments from larry kudlow speaking on u. S. Tv in terms of his expectation for how bad these claims can be. Claims. He said todays report will show a surge. He did not specify how much. A median estimate from economists surveyed shows claims will rise to a record 1. 6 million. We have had bigger calls out there from some of the wall street banks. Some projections as high as 4 million. , is the riskll going into these jobless claims asymmetric . Awareryone is very well the nearterm damage is going to be quite severe. I suppose the fear is that the deeper the nearterm damage, the more likely perhaps it is that the impact is more protracted as any nearterm recession ends of having ends up having a longer Lasting Impact on leaguer markets labor markets. That becomes more difficult to reverse even though you are seeing stimulus measures in order to limit longterm damage. Evaluations, yields are at the lower end of the spectrum we have seen of late in the u. S. But i would not be surprised to andthem overshooting again testing that 50 basis point low in u. S. 10 years. Terme data in the near comes out. Nejra what would cause yields to retest the 31 basis point low at this point . We are still far above that at the moment. We are. I think for now there is an awful lot we dont know. It is very much a risk onrisk off environment. In order for yields it is one thing for yields to test lows again. In order for you to move toward those lows of basis points in 10 year treasury yields and stay in thewe need to be outlook to move toward a ion scenario and that is not the base case right now. Nejra Daniela Russell staying with us. German lawmakers have approved a spending plan to cushion the blow of the coronavirus pandemic. The countrys finance exclusively to bloombergs matt miller about the package. This will be enough for the next months. Make sure theo economy survives and you will should always understand there is a successful system of a welfare state working as an automatic stabilizer. A robust social welfare system is one of the most effective systems in the world to deal making itsis without feasible that people lose their incomes and giving them confidence. It is absently necessary we not just wait for the economy to run again. Matt so on the others of this crisis, after you have the spread of the coronavirus in check, then germany is going to have to think about, you are already working on another stimulus package . This is something we are thinking about, the possibilities, the needs, what would be very effective. Therehere is some is some sense in what economists tell us saying it must be timely and targeted and must be temporary. For instance, to help the economy to start again. Matt what size are you thinking . Germany has a love for the 50 billion number. The 2008 crisis package was 50 billion. The last environmental package was about 50 billion. Are we talking about more than that now . Can we break out of that number . We will do the necessary things and we are able to do the necessary things. It will very much depend on the we are in now. The important question is that we get through these situations to be able to do things like that. In the situation right now, it would be ridiculous to do some activity so that tourism is booming at the same time when we stopped tourism. It is not the right way you bring up an interesting point. Germany has given itself the ability to do this. You brought debt down. A lot of countries have difficulty with that. How much firepower does that give you . How much space do you think you have . I think we have all the firepower we need, and we will use it. It was always the idea behind our fiscal strategies. Asked why it might make sense to reduce the public debt, it was also, it was always my argument saying, it is because there might be a crisis and we need the strength to do the necessary things. Now we are in the crisis. Something that came to mankind all of a sudden. Now we have the strength and we will use it. Was all optionals scholz. This is bloomberg. Nejra this is bloomberg daybreak europe. Says the bankomic and be good will use its meeting to take stock and expects a unanimous decision to keep policy on hold. The pandemic fronted officials andInterest Rates to 0. 1 kickstart a new round of bond buying this month. Daniela russell from hsbc is still with us. What will the bank of england do . What is clear from all of this is that the government and the Central Banks are working much more closely together. The use case has been an example of that. We have seen coordinated action from the bank of england, mainly the rate moves from the bank, the latest of which came after thursday, when they cut rates to announced 200 billion in q. V. Qe. Really they are ready to act if is needed. We could potentially hear more about options they are considering as well as how they are thinking, how it could impact inflation. A supportive environment for long end gilt . Speaking, we have used the rising yields we saw as an opportunity to buy back gilt. The 10 year sector looks cheap. Since then they have ran it back. The bank of england announcement last thursday. The backdrop is still very much bullish. You have the government ramping up and saying it will do whatever it takes to support the economy. You also have the same comments coming through on the banking and governor. Broadly speaking, given the risks to the outlook, the economic curve ahead, nejra very briefly talk of the ecb perhaps implementing omt, how much difference will that make to the market given that the pepp might allow through a change of keys some buying of italian bonds . Italian bonds . Back,we rewind italian bonds . Back,we rewind beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Nejra good morning from london. These are todays top stories. The u. S. Senate passes a 2 trillion rescue package to respond to the coronavirus. U. S. And european futures point to a lower open amid a global death toll above 21,000. U. S. Deaths from the coronavirus top 1000 is leading medical officials see potential for another cycle of infections. By 738 inspain rise 24 hours. And the economic cost. Larry kudlow says todays jobless claims figure will an increase. The bank of England Holding fire. The market has moved quickly from the stimulus package from the senate. Two concerns around the pandemic itself. No abatement in the number of cases as the death toll as well. U. S. And european futures point lower after the best day for european equities since the financial crisis. How asymmetric is the risk to the 10 year yield going into that jobless claims data . In terms of the dollar, a touch of weakness. The yen is bid. Commodity currencies under pressure. The aussie dollar, for example. Oil under pressure after a 9 rally over the past three days. The u. S. Senate has passed a 2 trillion coronavirus package. The approval has come after both countries move past a lastminute dispute over unappointed benefits for lowwage workers. The onus is now on the democraticlighthouse to pass the bill quickly and send it to President Trump for his signature. In europe, spains death toll for the coronavirus has surpassed the official figure from china, becoming the second highest in the world. Deaths rose by more than 700 in 24 hours. Hey daily record. Madrid is the countries worst affected region, but catalonia has seen a rapid increase in cases. Getting back to the corporate fallout, Qatar Airways said it is continuing to operate a third of its normal schedule while locking up on cargo flights as they carrier seems to write out seeks to ride out the outbreak. Lets go to bloombergs correspondent in qatar. I have on the phone joining ceo, whoairwayss speaks with me from doha. Operating 150 flights daily even as many of your rivals say they just cannot do it. How are you continuing to do this and he was flying right now . Who is flying right now . Downgrading capacity, but we need to get people back home. We have huge demand from several embassies requesting flights for the stranded citizens. At the same time, theres a lot of demand for people wanting to get back home. We are serving the people but at the same time making sure that we have the highest standards of protection for our crew. At the same time for our passengers, making sure the airplanes are properly disinfected with the latest materials that we have available to us. We are also making sure that the International Airport where the passengers are trafficking are also very wellequipped to make risk to ours no passengers. Think you will have to cut back further on the routes you are running right now . Plan the moment we do not to cut back further because we have already cut back. We still have very heavy loads. That qatarpening is Airways Load Factor is still in the high 60s when you take it directional. Can you put a dollar figure on the financial hit you have experienced so far and that you could experience over the coming months . Has estimated a 250 billion it to the airline industry. Know i cannot we werebehalf of getting out of the illegal blockade imposed on my country and unfortunately with the covid19, we have seen a huge 80 in ourmuch as revenue. , we have toe continue. We have to serve our country and the friendly countries who have requested assistance from Qatar Airways. We are not isolated. All the airlines in the world are going to ask for help from their governments and Qatar Airways will of course be one of said it. E have people should forget about the question of state aid. People who were bragging about not taking state aid and being independent are asking for state aid. Inis a very important factor every countrys economy. Have you spoken to willie walsh at aig . There have been talks in the u. K. About a bailout package. I dont want to interfere in the business of iag. Im sure whatever willie walsh says, he is looking at the interest of his airline and he will do the best for his company. I know this is a difficult time. It is a hard time to think about opportunities for investment looking forward. Do you see a possibility in a few months of perhaps making opportunistic investments . You have talked about and devo, you talked about cathay pacific. Are things looking profitable out there . There will be in the future and Qatar Airways will get there in a positive manager manner. We look at how we can continue the revenue stream for our company and if there is an opportunity that we see, yes, we will invest. The Aviation Industry go from here . What do you need to see from the indicator perspective, to return to normal service . Earlier, aviation plays an Important Role in the global economy. I know there will be a rebound. It may take longer, but i am confident the airlines will once therating again problem of the covid19 is stabilized, that there is a drug to treat it, a vaccine available. People will start traveling again. What is important to note is there will be a huge infection because it is only survival of the fittest. So consolidation, do you think . I dont know about consolidation too much. There is a lot of consolidation already happened. But there will be nothing left of consolidation because a lot of airlines will go belly up. Hence i mention it will only be survival of the fittest. Cleverirlines will take decisions to survive in this very difficult period . Dont forget, nothing like this ever happened. Such a pandemic never happened for the last century. 100 years. Now we have to live up to it. We will have to stand up to it and we will have to persevere in this difficult time. Quickly, i know one of your executives talk yesterday to Bloomberg News about potentially withholding certain projects. Does that include any parts of your fleet, Holding Orders on that front . Executives in Qatar Airways made a comment, im not aware of it. Those kinds of decisions are not made by my executives. They are made by me and my board. Fair enough. I do not mean to get anyone in trouble here. Thank you for joining us. Stay safe. Back to you. Nejra thank you so much. Here is what you need to know today. Words of caution from state street to guilt buyers after its gauge of Market Health flashed warnings of further economic stress and draw down risk to come. Manus cranny joining us from from dubai. Manus good morning to you. Survival of the fittest. It, you haveabout had the panic selling, what do you have now . If you look at financial conditions, the tightest since this so have a look at chart from state street. It is their Systemic Risk indicator. I was quite shocked. Risklked about systemic still being at a record. We talk about stimulus packages. We talk about 50 billion possibly to come from germany. The reality is that has been a huge amount of stimulus and a huge dislocation in what we call Systemic Risk. A value trap potentially because this risk is real. It reaches the record. They remain incredibly fragile. You have had a rebound. The thirdbest rebound since 1945. But you saw this before in 1987. There was a magnificent rebound after the crash. Post lehmans, a major rebound as well. The question is about the veracity of this rebound and systemic issues remain. Part of the question we will put to our guests. Thank you so much for joining us, especially when you consider the fact that after lehman it took until march 2009 for equities to find their footing. The drawdown we have seen because of corona pricing is not at the 50 level we saw in the financial crisis in the dotcom bubble or the 1973 oil crisis. Coming up, we speak to a former member of the bank may lead Monetary Policy committee as the central bank is due to announce a policy decision. Nejra this is bloomberg daybreak europe. The bank of england holds a Rate Decision at noon, but it has already fired its policy bazooka. Bloomberg economics said it will use this meeting to take stock and expects a unanimous decision to keep policy on hold. The coronavirus pandemic prompted officials to Interest Rates and kickstart a new round of bond buying. Today does mark the first scheduled vote of andrew baileys tenure as governor. Thank you so much for joining us today. In terms of measures the bank of england has implemented, will aey be enough to mitigate crisis to the tune of a 14 drop in gdp in the u. K. In the first half which is what Bloomberg Economics is predicting . See aare going to clearly very big drop in gdp, partly because all of the measures that have been taken to mitigate the spread of coronavirus. Monetary policy itself is not really the main leader. Obviously the bank has taken Interest Rates down as far as it reasonably can. I think a lot of the action now lies with direct interventions by governments in fiscal policy to keep the wheels of the economy moving as much as they can in these difficult circumstances. Nejra we are expecting to hear from the chancellor today in terms of providing unemployment support for those who are freelance or selfemployed. Is this coordination between the bank of england and fiscal policy going to be more effective than what we have done during the financial crisis . I think it is a different time for economic shock. The coronavirus stock is demand and supply side stock. There is not much Monetary Policy can do for supplyside shops in any case. Also we have had little room to maneuver to get Interest Rates down before we started. Crisis we could bring Interest Rates down a long way from 5 to 1. 5 . A lot of the impetus does lie in reducing, the chancellor to use his fiscal levers. I hope he does provide a package for the selfemployed when he makes his announcement. It is a very important part of the u. K. Economy. We have one of the highest ratios i think in the major economies. How concerned are you about future policy space for the bank of england or bank of england independence . Or is that a question to be put to the side for the scale and unprecedented nature of the Current Crisis . Still bank of england is butating independently, Central Banks and governments have the same objective, to stabilize the economy and do as much as possible to support the functioning of the economy. Is not thee really key issue. It is the effectiveness of the bank of england alongside the affected risk of fiscal policy. Havef the disappointment i is that the bank of england raise the fed did not Interest Rates very much in the 2010s and therefore did not have much scope to reduce that to provide a boost to confidence in the current circumstance. The expectation in the market is not for further rate cuts right now for the bank of england, but rather, an expansion of qe. Should the bank be actually printing money to give directly to households now . Sure thats going to deal with the issues we face at the moment. The government can borrow at very cheap rates. If the government wants to households, itto can Institute Government borrowing at low costs, almost the same as printing money. Of printing idea money to inject into the economy is very speculative. Im not sure its going to be that effective. The most effective thing is to get the right fiscal interventions from the government. That is why this package will be very important today. You mentioned that you thought the bank of england should have followed the fed raising rates. What do you make of the response in the u. S. To the coronavirus crisis, both of the combination of the measures implemented by the fed and the stimulus package just passed by the senate . I see those measures as potentially doing what we are trying to do here in the u. K. And what other countries are trying to do. The u. S. Economy is much bigger than the u. K. And therefore the numbers have to be bigger. We have had an injection including loan guarantees around 350 billion pounds. Trillion is probably of the right order, but it does not mean that is it, which is what we have learned in the u. K. As we have to come back and deal with issues that were not properly addressed. That may also have to happen in the u. S. As well. Thank you so much for joining us this morning. Up, a spike in jobless claims. Larry kudlow expects the report to show a very large increase. More on that next. This is bloomberg. Nejra this is bloomberg daybreak europe. Getting a quick check on the Market Action and the best two days for Global Equity since the financial crisis. We are seeing european and u. S. Futures lower. Mixed picture in the asian session. It seems the markets have moved on quickly from the 2 trillion stimulus package in the u. S. To concerns around the pandemic itself and the lack of the ability of authorities to actually stem it. The treasury yield is sliding. How asymmetric is the risk in treasuries going into the jobless claims number . Larry kudlow seeing we can see a bad number. The yen is bid. Commodity currencies coming under pressure. You are seeing generally dollar weakness against g10 and oil down more than 2 after a 9 rally over the past three days. Goldmans commentary is a halt in the price war cannot save oil from a glut. Coming back to the u. S. Senate passing a record 2 trillion Coronavirus Relief package, the approval has come after both parties moved past a dispute over on up limit benefits for lowwage workers. The onus is on the democraticlighthouse to pass the bill and send it to democraticled house to pass the bill and send it to President Trump. We were discussing how we moved past the delay over unemployment insurance. I was actually drawn to the number that has been set aside for hospitals and health care in general. It is not as big as the number set aside, for example, for companies, airlines, given that investors are really concerned at the moment about the containment of the pandemic, could this cause more worry . Could it be changed . What we were hearing from governors. California is tapping their own reserve of cash for their hospitals and to buy equipment. New york Governor Andrew Cuomo who has been at the center of this given that new york is the epicenter of this pandemic, he was saying the money given to new york state is a drop in the bucket compared to how much money they need to spend on ventilators. They need 30,000. They have 11,000. There is that worry, we hear that congress is working on potentially another phase, but there is money given to states. The state could redistribute money directly to hospitals. It is an unprecedented amount of money. When you look at it alongside the fed stimulus, this is 6 trillion, yet everyone is saying its not enough. You can see that in the markets. They have been debating this for five days. But also, mliv, our colleagues are talking about the fact they dont think it goes far enough. How do you continuously fight the economic downturn in the markets when you dont yet have the Health Policies figured out . Nejra thank you so much. The markets eye is trained on jobless claims. Bloomberg economics talks about an unprecedented increase. Futures move lower in the u. S. And europe. Coming up, my coanchor will be speaking to the ceo of ubs. When you move homes, you move more than just yourself. Thats why xfinity has made taking your internet and tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Matt good morning. Markets, bloomberg this is the european open. I met matt miller. Topslobal death toll 21,000. The pandemic deepens in the u. S. More than 1000 dead there. Senate passes a 2 trillion rescue package to respond to the coro