Economy could lose a chunk the size of japan as coronavirus cases top 1. 5 million. Across extends gains opecplus meetings as Top Producers move closer to a deal. Cutia says it is ready to 1. 6 billion barrels a day. Just under one hour from the start of cash equity trading. Lets take a look at your futures. Gains inoking at futures on the ftse, cac, and dax of 1. 2 . More than 1 gains in european futures. U. S. Futures had a mixed picture. Nasdaq futures were down and we were seeing gains over the last 30 seconds. We are seeing u. S. Futures climb wellwell ahead of the open in new york. Johnson haser boris spent a third night in Critical Care where we are told his condition is improving. Officials are drawing up plans to extend the lockdown in a bid to control the crisis. Scientists predict the u. K. Will be headed into the peak of the outbreak over the next week. Biden is thejoe Presumptive Democratic nominee for president. Thats as Bernie Sanders ended his run, thanking supporters for helping create an unprecedented grassroots campaign. While he competed, he said he will stay on the ballot help push closer to his vision. Dow jones includes ecuador, shell, total, and others. It says the shares were bought on the open market in recent weeks and Public Investment they continue to buy more. No jones says there is comment from the oil companies. Global news, 24 hours a day on air, on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Now, asian stocks were mixed thursday following the threeday rally as investors mulled when economies would be able to ramp up. Climbed after algeria confirmed the opecplus meeting for thursday. Lets get into the markets right cooper, our mliv strategist. We saw mixed asian trade but positive futures here in europe. Our equity markets rallying as well on hope that the market can meet an agreement . Have seenly we sentiment driven more by crude oil lately. There are hopes we will see a deal come out and that will help support the energy industry. , europeanmorning equities are getting somewhat of a lift. We are seeing guidance being shifted away from peak infection rates and more towards hopes we will see a lifting of lockdowns. So speculation we could see italy begin to take measures to lift the lockdown, and more broadly, it could be pivotal going forward. What do you think about the coronavirus cases . Theres so much talk about whether the curve can be flattened or leveled off. How much of that is driving the markets . Shift in these rising mortality rates. Whether that is the case remains to be seen. When you look at the fed meeting riskes, one key downside is the potential that the spread of the virus might intensify beyond those areas that are currently hardest hit. It would once again turn sent sentiment negative. They are expected to post another sizable print, and as we get to the magnitude of the economic shock at hand, i think there is room for the pricing of that in markets. Next week, earnings season kicks off so it will be good to get some insight into just how hardhit companies are and how they will potentially try to recover from this. Matt how big a piece of the conversation is whether or not companies will pay dividends . We are seeing headlines from saying it will not start the next phase of its buyback during 2020. We had news this morning that ubs and Credit Suisse are still going to pay some dividend. How prevalent is this conversation . Something that is on the top of the radar for investors. If they are having to reprice, how will they value some of the stocks . Thats whats crucial to look to u. S. Earnings next week. Theres no gauge right now to value a lot of the equity markets. , they are p e ratios just above the 17 level. About the 13. 3 low we saw in march. Reflectiveats not of the economic challenges facing these companies. Crucialhy it will be for a wide range companies. Matt its interesting we are seeing from the audio from them that they will pay their dividends. Its going to push the start of the next phase of their buy to at least next year, but it is going to pay dividends to ordinary shareholders as scheduled. Let me ask you about the fed minutes and what you expect for the initial jobless claim. Powell is going to speak later today. What are you looking for . What came out of the Meeting Minutes yesterday was the fed saw it was a profoundly uncertain Economic Outlook that prompted them slashing rates to near zero. Withinas some dissension the members who saw the need for a 50 basis point cut versus 75. They wanted some room should Downside Risk materialize further. Crucially, markets will be looking for what more the fed can do at this point. There is potential to see measures to support Small Business lending and potentially what their perspective is on qe purchases. Whether there are more explicit measures coming out, for example yield curve control, which the fed has somewhat alluded to. Theres certainly a lot for markets to chew on today. Initial jobless claims are expected to be quite high. How markets react to that is quite clear given how they have reacted over the last two weeks. I think its difficult for markets to digest because theres no precedent to gauge the death. Gauge the stock at hand. Shock at hand. Matt laura cooper is an mliv strategist joining us this morning. Coming out, stocks rally dire despite dire warnings and an increasing death toll. We talk with an asset manager about why now was a good time to list the company. This is bloomberg. Matt welcome back to Bloomberg Markets europe. 46 minutes away from the start of cash equity trading this morning. We are seeing futures up right now. This is even after the coronavirus claimed another daily Record Number of victims in the u. K. As well as in the hardhit states of new york and new jersey. The number of new cases in italy and spain crept up after several days of decline. Global tally now stands at 1. 5 million, that we know of. Faucian expert anthony says the start of the turnaround could come after this week. Thats as wall street banks are warning the pandemic could rob the Global Economy of more than 5 trillion in growth over the next two years. Thats greater than the annual output of japan. And yet stocks are in rally mode and our next guest decided this was the time push ahead with the london listing of its asset manager. Joining us is the ceo at 91. Investec, you as gave the company a new monitor and pushed ahead with this new listing. Why now . Good morning, matt. The very simple reason is we mergersy with the i. T. Splitting the Investec Group into. In two. We werent investing, we had shareholder positions and we particularly wanted to give staff and clients some certainty about what we do. The 16th of march was a pretty strong down day. The market has somewhat recovered but it is not driven by market dynamics. Its to simplify and focus the investec. We are very happy we push through because we are in a position to deal with the corona challenges as a pure standalone asset manager and the banking side could deal with its challenges, which are very different in these times. Founded orctually built the Asset Management arm of the south African Banking group back in 1991, hence the name. You have been through a lot of phases in this market from the. Com bubble burst to the great financial crisis. How would you compare that to right now . Russiancould add the emergingmarket crisis in the 90s, i could add the political transition in south africa. Yes, we have seen a few. Ut this is different it was a very, very Sharp Financial correction followed by much more significant intervention and stimulus than ever before. You seed the fiscal and monetary actions driven to the policy response to ehealth pandemic. In that sense, theres a humanitarian aspect on the other hand, this is a real economy we arend the moment dealing with liquidity challenges. We will have to deal with the potential credit risks during the line and the impact of the vulnerable on society. Matt absolutely. I wonder about the daytoday business of running your Asset Management. Do you see everything going back to normal after the crisis passes . Or, is it really going to change the way you do business anyway . I dont think the world look back to normal. Recoverywe do see is a thats gradual in markets and we do see the financial economy being a part of the solution, rather than the problem. 2008 not combining the necessary oxygen and lifeblood the real economy. We are going to see major disruptions particularly in the Small Business and certain. Ndustries you have done a fantastic job keeping the channels open, but we could move 1000 people to work from home with the flick of a button. A coffee shop or hotel cant do that. The question is, how well will policy responses be coordinated . I just want to agree with the vis call it the way we come out of this will be dependent on how well Global Policy is coordinated. This is the time for the g20 to stand up. Matt what do you it expect in terms of todays meeting . Time with a difficult the pandemic and more to come. Absolutely. Em is attractive, but theres a big differentiator between markets that can withstand this and those that cant. Concerned,as oil is we have seen the worst of the russiasaudi dispute. , but thelowly get back genie is out of the bottle and it will take a long while for the markets to recover. Thats where i get back to global coordination. We had good signs this week from the Imf World Bank there needs to be coordinated intervention to stabilize. Matt are you ready to go in and buy assets . You already have a Shopping List . Absolutely. We have been in the market all along, but clearly it depends on asset by asset. Veryredit markets had some clear disruption of markets and credit the quality. Policymakers intervened there in fast, almost on 2008 levels. Its not a time just to buy the beta. It may look as though they are doing well this Tech Leadership is continuing, but if you dig deeper. There is this differentiation. It will be from here on much more of a bottom up. Hinrich hendrick, thank you for your opinion. Lets get your newburgh corporate flash. Coronavirus pandemic has derailed a significant amount of its new business, postponing projects and denting new sales. It was the first major warning signal of a broader slowdown in the software industry. License revenue dropped. In addition lowering forecasts, sap says it will be lowering hiring and reducing spending. Starbucks says things will get worse before they get better based on its experience in china. Financial impact extends out as far as september. Despite the outlook, they say the headwinds are temporary and can be reversed. Disneys five month old streaming service has topped 50 million paid subscribers relying on a low price and wealth of familyfriendly content. Disney plus has launched in eight European Countries and india. The platform is part of disneys three pronged plan. That is your Bloomberg Business flash. Coming up, Credit Suisse and ubs delay half of their Dividend Payments, but they are going ahead with the rest. We bring you the details next. Plus, dont miss our interview with the ubs ceo. This is bloomberg. Matt welcome back to Bloomberg Markets europe. We are 36 minutes away from the cash trade and still seeing positive futures across European Equity indexes. Lets turn to Swiss Banking right now. Both Credit Suisse and ubs have proposed delaying past their 2019 Dividend Payments. This follows mounting pressure from the swiss financial regulator on the nations banks to reconsider distribution. They say payments to shareholders would be deducted from the b relief the capital relief. Me like the interesting thing is that they are going to pay a dividend at all and sacrifice part of the relief package to do so. Thats correct. I think it is kind of a compromise here, to say we want to keep shareholders at least a little bit happy. And on the other hand, if the regulator is putting a gun to your head, you cannot fully ignore that. Mindlso have to keep in that nobody really knows how this whole economic hit will play out. For every bank, its prudent to keep some powder dry. You dont want to get into a situation where you have paid out to shareholders and then have to ask for fresh capital if things turn sour. Yeah, and its going to be different in different regions. U. K. Banks are, for the most part, canceling dividends. Apparently, the bank of queensland cut its dividend completely. What do we know about european and german banks . We have Deutsche Bank here. Theyre not paying a dividend in any way. Commerzbank, we have not heard how this is going to play out. In general, european banks are in good shape in terms of capital. Just this morning, analysts at Morgan Stanley said the whole thing will be more than an earnings issue and more of a capital issue. But nobody really knows how things will play out. I think theres no harm in suspending dividends right now. You can always go back and pay later if you come to the conclusion that things are all right and you can afford to make those payments. Matt thank you very much. Janpatrick wrapping it up for us. At 9 30ceo joins us a. M. Keita. U. K. Time. Matt welcome back to the european open. 30 minutes away from the start of equity trading. Take a look at some of the key events to watch out for. This afternoon, we get the account of the march ecb meeting. Investors will scour those minutes for any hints on further action to tackle the economic fallout. Get 30 p. M. U. K. Time, we the initial u. S. Jobless claims. Economists forecast a total of 5 million clams, the second highest reading on record. Around 5 p. M. , we get an update from the British Government on their daily coronavirus briefing. Us this ison tells likely to be a key question, though his health is likely to improve. Turning now to the federal reserve. Minutes show the fed was buying time when it made an emergency rate cut in midmarch. That was so it could introduce new programs to mitigate the impact of the outbreak. Point, mitigate or saw Downside Risks as mitigating a forceful response is a record of their unscheduled meeting. U. S. Stocks are back in rally mode now and technical traders will be keeping a close eye on where they finish the week. A close in the s p 500 above the would be aaverage strong sentiment boost to the equity bulls who believe in technical analysis. Ofning us is the head macroeconomics at axa investment managers. Fed minutes were shocked at the impact of the fight to stop the spread of the coronavirus, and indeed this huge global stock looks likely to provide something we have never seen. I think thats right. Even though they are only four weeks old, they do look a little dated. I think all of us have moved on rather quickly. At the time, it was a massive shock. The fed is in the vanguard trying to cushion some of that stimulus. Initially in terms of economic but very much trying to keep markets going. The fact that the intense scale of asset purchases is now over 1. 2 trillion treasuries. It reflects the dysfunctionality they were seeing in those markets. I think an incredible shock has come through. Talking about the profound uncertainty, i think we have seen a fed that has as much as anything, try to address the plumbing of the u. S. Economy. Matt what do you think about the plumbing . There was a great column out this morning talking about how difficult the decision is. Economy, is ithe too soon and too dangerous . What do we risk if we dont, what do we risk if we do . He has pointed out that Central Banks have tried to address liquidity issues in somehow dealing with things like soaring unemployment but that we have not had the best delivery pipes. We still need to think of ways to create them. To getgoing to be able the money out to people who need. T the most the economy has stopped so suddenly and quickly, and so have people. The speed of the response is important. Repeatedallenge we see across the planet. It is difficult to get that going through. The fed has also had relatively unprecedented moves into trying to step in and help deliver that fiscal support. Returning funding to the Pavement Protection Program to try and get thanks to takedown loans in the first instances. All of that is part of getting money through the door. Its challenging. Larry summers a couple of days ago that this package would be extremely difficult to deliver even for the most competent of governments and it is a difficult issue to get that through. Matt we are getting headlines across the terminal from Christine Lagarde. The ecb head said that each onth of the lockdown cost 23 of gdp, saying that small, Vulnerable Companies must be helped. He says that debt must be paid back gradually. Im sure her emphasis is on gradually, when i see that debts must be paid back, i wonder, does it make sense to you . The government orders a stop on all revenues and incomes to the most vulnerable businesses and then load them up with debt that they have to pay. Should those debts somehow be forgiven . Shouldnt those credit lines actually be gramps . Grants . She is not just referring to private sector debt. We would expect governments to be taking on significant additional borrowing, and ultimately, every borrower and a creditor, there is a reckoning that comes through. Its hard to see how you do forgive debt over time. Thats why we are stressing the gradual repayment here. What we clearly need is not a situation but we saw where governments quickly rushed t