The bloomberg terminal. A grim milestone. One Million People have now tested positive for the coronavirus with more than 50,000 deaths worldwide. The Asian Development bank estimates the cost of the pandemic at 4. 1 trillion. We will get through this, you was Vice President mike pence tells bloomberg that the economy will rebound from mounting unemployment as the government ramps up virus testing. We are testing over 100,000 americans a day. We literally are tracking every single day the number of cases that are coming out, where they are coming out. Pullback, oil markets reassess President Trumps tweet on output cuts with brent and of uti giving up some of yesterdays gains. We will double big into that story. Just under an hour away from the start of cash equity trading here in europe. Lets take a look at futures right now. They are down in terms of european futures. Downed arrows with futures 6 10 of 1 . Euro stoxx, ftse, dax futures also down. Lets take a look at u. S. Futures. We also see dips of more than 1 for futures on the dow jones and the s p 500. What do you see on the gmm . Anna i will get to breaking his first. News first. You see it on your screen. , notir giving us guidance able to give us guidance for 2020. Full year 2020 profits remain within guidance but its not possible to give fullyear 21 guidance. Is not inncial year sync with the calendar year. They see their fleet largely grounded for at least april and may. Fullyear 20 profits remain within the lower end of the Guidance Range and they give us the exceptional charge of 300 Million Euros on fuel hedging. It will be good news at some point, despite hedging that is in play, when oil prices filter through into the aviation sector. Without demand, that is academic. Lets talk about bae as well. This is the defense base bae saying they will not be up to predict the Pandemic Impact on the 2020 results. They see more significant disruptions in the Second Quarter. Eae deferring its decision on dividends. Lets get to the gmm. What we see . Something pretty next. Slightly negative for the asian session. Performance with the kospi and the japanese markets. The market very much aware of the fact that we have now surpassed one million global infections. Goodness only knows what the real number is. There is a lack of testing in many places. That has only taken for months. That gives you a sense of how quickly this has developed. Jobs later on today, as we saw those stunning initial job jobless claims numbers. Asian stairs shares were mixed. Milestone of one million confirmed cases in the coronavirus outbreak. President donald trump said russia and saudi arabia would cut production. A lot to discuss and all of that. Laura cooper joins us now. I want to start with the oil story. It is quite a stunning move. Brent jumped to more than 33 a barrel. We also saw a move of 22 in one day. Much of that was while back wound back. We continue to retreat today on oil prices. What is the expectation year for oil prices . Sharp after we saw the bounce yesterday, traders are following two things. The timing of the potential cuts. The effectiveness of these cuts. When you look at timing, it is unclear whether we are actually going to see any kind of agreement between saudi arabia and russia. Even then, that would be conditional on other producers cutting as well. Just look at the attractiveness of this. Yes, the potential 10 Million Barrels per day cut would account for about 25 of opec production and 12 of total Global Production which is quite bountiful. When you had this against demand destruction, it is unlikely that it will propel a sustained recovery in prices. It could limit some challenges right now around intermittent supply in terms of storage. Ultimately, demand continues to drive the crude oil price. We are also going to get the nonfarm payrolls number out today. It has been called the granddaddy of all economic statistics. It is really important for the u. S. Market. The whole world watches. What do you expect . Laura todays u. S. Nonfarm payroll report should be taken with caution. When you look at the actual period, it includes march 12. That is the second week of march. Jobless claims that week bounced to 288,000. Certainly not the 10 million that we saw in initial claims in the final two weeks of march. Its likely to be the case that we will see the unappointed rate, consensus is 3. 8 . The decline in payrolls is 100,000. That is not yet capturing the impact of this lockdown and social distancing measures. I expect that it will be the april reading that is going to provide a clear print in terms of just the deterioration that we are seeing quite rapidly in the labor market. Anna those numbers around initial jobless claims are quite stunning. We are already seeing a worse situation than the 2008 recession. We will look to the jobs report later on today. Perhaps we got the best news yesterday. Let me talk about something closer to home. Yesterday, we suckers 11 saw ursula they forogizing to the italians what has or has not been done so far. Now we see the Prime Minister in italy saying its time for the eu to be both. Is there a burning platform for the eu to be both both . Bold . Laura at this stage, there is still uncertainty in terms of what the actual financial repercussions will be in terms of lows at this stage. There is still a call for coronavirus bonds and a more coordinated virus Initiative Action from the eu. It would likely be the case that if we need more fiscal stimulus pumped in an order to keep the Health Crisis contained, that remains to be seen. That could ultimately widen the spread lets again. Its likely a case that markets are still going to want to see further court action coming from the eu leaders. Matt thanks very much. Laura cooper there, your bloomberg mliv macro strategist coming to us on these very volatile markets. Not just stocks. We are seeing incredible volatility in oil. Coming up, we speak with the european commissioner for internal market and services. That exclusive interview, coming up next. This is bloomberg. Anna welcome back to the european open. It is 7 11 in london. European futures to point to the downside. Just by a fraction of 1 . U. S. Futures also have been weaker over the asian session. Lets get a bloomberg first word news update here on todays top stories. President donald trump is trying to get the world to cut Oil Production by 10 menu barrels a day in an effort to end a war over market share that sent crude prices plunging. Russia says it hasnt reached any deal with saudi arabia. Itehold retailer is will ramp up borrowing to make up for the shortfall. The was on implement rate could hit 60 . The comments come after 10 million americans lost their jobs over the past two weeks. Yesterdays initial jobless claims exceeded estimates. Over 6. 3 million americans apply for a implement benefits in just the one week. The u. K. Health secretary is pledging to ramp up coronavirus testing to 100,000 a day by the end of april. Its a massive increase to current capacity under 30,000. It is far short of the 250,000 a day target promised by the Prime Minister. He describes testing as missioncritical to get through the pandemic. 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. Matt . Matt thanks very much. The global case number of covid19 patience has hit one million with deaths topping more than 50,000. The epicenter is in europe. Virus deaths have accelerated in france, italy, and spain, leaving governments with little leeway to end lockdowns as the human and economic crisis strains european unity. Slowed in italy. Intensive care admissions declined in pain and france. Officials say it is too early to relax restrictions. In the fight against the virus, medical supplies are crucial. The block ist says aiming to ramp up production of essential equipment so europe itself is selfsufficient and not reliant on noneu countries. Joining us now from paris is thierry bertin, eu commissioner for internal markets. Hes a former French Economy minister. Youve got a lot of experience, mr. Minister, that is vital to your mission. Sure thatoing to make we have enough protective ventilators,ough and enough people that know how to use those ventilators . Thierry good morning. Indeed, we are really fighting to make sure that everyone will be able to get this equipments. Before starting out, i would explain it to you. No one was prepared on the planet for such a crisis. Not once it will country. China wasnt prepared. European countries were prepared. U. K. Wasnt prepared. U. S. Wasnt prepared. Beginningbegin you of january. China discovered the magnitude of the crisis. We sent them immediately where they are needed. 56 tons of medical equipment. Masks, everything. Its normal. This is a global crisis. You are right. The epicenter is europe. It is europe and now we have to try again to make sure that we get everybody. This is on its way. Did, ist thing that we have been very impressed to see how companies reacted extremely well. Second thing, i convened meetings with textile industries. In order to have them open new production lines and they did it very quickly. Yes, i believe within the two next few months we will be selfsufficient like china did over the past three months. Anna [inaudible] we have to be ready to help others. In terms of ventilators, the same thing. Course, companies are making ventilators. Also others like automotive industries, aircraft industries. I want to get to other subjects. To tellvery interesting us how we got here now. I want to get other subjects. Some countries are pushing ahead to use technology to work out where people have been and whether they will come into contact with the virus. What is your view on these . Are they essential for removing some of the lockdown measures that are currently in place . Thierry im sorry, there was noise on the line. Tracking apps . Anna exactly. They allow us to understand where people have been. How important are they . Thierry at this time, we are not yet there. At this time, we are in the process of evaluating precisely when the peaks of the pandemic are rising or we expect to be rising in every single eu country. In order to do this, i convened meetings with collaborators, asking them to give us aggregated data in order to be able to finetune algorithm to predict this. It has nothing to do with tracking. Now when the exit of the confinement will come, we will see what we will do. Today, it is too early to say. In europe, we are extremely cautious. Everything we will have to do will have to be compatible. Matt it is definitely an session of europeans that privacy issue. How can you be sure that this anonymized data cant be de anonymized after the crisis. People often trust that things are safe, for example photos in the cloud. They got hacked on a regular basis. How can you be 100 sure that that wont happen . Thierry we are 100 sure. Its about mathematics. Im an engineer myself. It is 100 sure. Anna some european governments are relying on the u. S. Software company to analyze big data sets. Are you concerned that this could leave europe reliant on u. S. Technology . Thierry we are in a Global Environment. That is something very specific. We are in a Global Environment again. Stuff with some of our friends and allies. Im not concerned here. This is a crisis. Everybody is focused on what they have to do. I just want to reiterate, we will win this crisis if we are all together. Solidarity with u. K. We will be here. Solidarity with the west. Solidarity with china. Ifwill not win this crisis we try to do it alone. No one single country will be able to do this. Matt can i ask you on that note, as a former economics minister, what is your take on the possibility that countries like italy, spain are going to be able to weather the economic storm just using the esm mechanism . Or do you think that the corona bonds that the germans are so dead set against are in absolutely subsidy necessity . Thierry i will be clear on this. Im a strong believer that to overcome the crisis, everything go country in europe will have to put on the table a plan. Range of 10 of their own gdp. Germany already did it with its plan. It was voted on last week. This is what u. S. Did with the 2 trillion plan supported by the senate and house. Every single country is working on this plan. Of course, the plan will be finished. Let us start with the plan, the business side. And then we will discuss how to finance it. The point is, what the ecb put on the table today will not be sufficient to finance all these plans. One thing is certain. Every single eu country should have access to finance this plan. Germany has not the money to do it. They will have to borrow everything. Your us u. S. Doesnt have the money. No one has a planet no one on the planet has the money to put on the table. Our job is to make sure everybody will be able to get the money that they need. Anna thank you very much. Much. You so coming up, jobs day. Nonfarm payroll expected to fall for the first time in nearly a decade. We discuss, next. This is bloomberg. We are now testing over 100,000 americans a day. Dayre tracking every single the number of cases that are coming out, where they are coming out. U. S. Vice was president mike pence speaking to bloomberg. Joining us now to talk more about this is anna harris, head of equity for portfolio strategy. As we continue to price in bad news and worse news, do you believe there is even worse news to come . Have we priced in everything from this disaster yet . Either. H hi there. Unfortunately, we havent. Priced all the bad yet. I think we had the first reaction to the oil shock. We started to see data coming through on the economic side at the macro level. Now what we are going to start see for the next few months is how this is impacting the company level. Acrosseen dividend cuts many sectors. Weve seen dividend cuts encouraged by the u. K. Central government. By europe as well. We are going to continue to see volatility in markets as companies themselves digest and feel the full impact of the slowdown currently around them. Anna you talk in your notes about liquidity and fixed income markets being particularly challenge. What are the implications of that . What does that mean for the difficulty in rebalancing portfolios . What we are telling investors and our clients is just to be patient. Nobody ever wants to be a forced seller or buyer in a market where liquidity is more strained. We can see that in the markets come in trade. We can see it throughout the spreads and how it has caused investors more to rebalance their portfolios. What we are saying and suggesting is just to be mindful of asking things to be done with too much speed. Anna thank you very much. Apologies that there was some errors there. Stay with us on the program. Up next, President Trump says sense oil markets soaring with hopes of an end of the russia saudi price war. In the market get it head of itself . We went up by 22 at one point. The latter part of the day unwinding those gains. Brent at 2877. We will talk oil next. This is bloomberg. Anna welcome back to the market open. European futures point downward, not by much by recent standards, just a fraction of 1 . U. S. Futures are down more than 1 , but off session lows from the asian session. Will trading lower after President Donald Trump sent prices touring yesterday. He tweeted russia and saudi arabia will give 10 Million Barrels a day, but it hadnt reached any deals on cuts. Goldman sachs says is little too little, too late anyway. We saw stocks benefiting greatly, 22 higher in oil prices. Some of that shortlived, i guess, when everybody assesses what has been agreed to today and what difference it would make to Oil Production, even if we get that level of cutbacks. Yes, so i guess the reaction of the market, the rumor of a possible deal were positive as you would expect. There wasnt much of a substance to. At the moment to it. At the moment, given the National Lockdown were seeing around the world, i dont think the conversation is just about oil prices and production, but also about demand. We are seeing slowdown in demand around the world because people are not traveling, people are not consuming less. Factories are consuming less. Cuteven if we could see a isproduction, it no longer just a supplyside shark, but a certificate shock, base if you get slowdown but a significant slowdown in demand. Matt oil stocks have been hit pretty hard, but much harder hit have been travel and leisure and automakers, those companies that provide things that use oil. Is there any way that that demand is going to bounceback, instantaneously, ana, or anything its going to take time even after we give this virus under control, to get people buying cars, to get people back on planes flying to vacations . Ana it will take some time, because the thing i think there will also be a confidence that has to be regained from consumers and investors. I think what we will see, in unemployment numbers, were starting to see some negative news on that front around europe. So, the consumer will be affected by this slowdown, and it will take some time, even after the spread of the virus is contained, even if you concert to see some level can start to see the level of by telling in the nap plateauing in the number of cases, it will take some time to recover. To ask you about count per follow portfolio rebalancing. Their were wide assumptions about the levels of equity that might need to be purchased. Take us through your thinking there. Wereeah, so i guess what seeing with our investors, with to,clients that we talk given the strong performance, we now find ourselves underweight equities. Ora lot of these targets, these ranges are being hit. In over the last few weeks, and well see just after quarter end, we bounce out of fixed income, everything back into target. Suggests most investors might be between 310 on the rate of public equities, which is fairly outside the regular range. So, the challenge is we might be doing this rebalance into equities, where there is plenty of liquidity after fixed income, where liquidity is more challenged. Asking investors to think about this, may be less immediately, giving their professional investors more time to navigate things and make sure their costs dont spiral out of control. Matt what kind of valuations do you think we should be seeing on the s p 500, on european stocks . At