It is only the Dow Jones Industrial average right now that is lower today. We had a raft of earnings and a huge amount of Economic Data, very poor Economic Data. In the s p 500, it is some of the banks dragging it lower, but the dows worst performer right now is boeing, which is down 5 . Exxon mobil in there as well, and then j. P. Morgan chase. We had earnings from Morgan Stanley this morning. It has been a little all over the place, but down 1 now. The 10 year yield at 60 basis points after we got another whopping claims number, which we were expecting, but nevertheless is a shock to the system when you see it actually come out. Crude oil back above 20 a 0. 33. Just up about the u. S. Government said it was mulling paying drillers to keep oil in the ground. The vix just above 41. Guy a lot of oil. Lets check in with the bloomberg first word news. Here with the details, ritika gupta. Ritika the coronavirus outbreak has now effectively erased at decade of job creation. More than 5 million americans filed for Unemployment Benefits last week. In the months since the pandemic swaddled to the u. S. Economy, 22 million have lost their jobs. The latest number suggests an Unemployment Rate of at least 15 . President trump will release plans to relax stayathome guidelines today, suggesting that the pandemic is plateauing in parts of the country. The president spoke to more than 200 Business Leaders yesterday. Finance executives told him more testing needs to be in place before people feel comfortable coming to work. In japan, Prime Minister shinzo abe has announced a nationwide state of emergency, saying that it will stay in effect until may 6. Japan has had more than 9000 virus cases and about 150 deaths. Opec sees demand for oil falling the lowest in three decades. The latest report is that less than 20 Million Barrels will be needed in the second quarter. Even if numbers fully implement even if members fully implement new cut backs, it will be more than the market needs. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im ritika gupta. This is bloomberg. Guy thank you very much, indeed. Morgan stanleys best trading performance in more than a decade capped off a quarter in which wall street capitalized on wild market swings. But the market questions whether some of those gains can continue. Erik schatzker talked with Morgan StanleyCeo James Gorman. He started by asking about his recovery from the coronavirus. Doing great, thank you. I am completely recovered, and to be perfectly clear, i had the virus, but i was one of the lucky ones. I was not hospitalized. My lungs did not get infected, which was a real blessing. ,hile it is unpleasant certainly in those conditions, it is manageable. My heart just goes out to the folks who were not that fortunate or who had Underlying Health issues, and the very elderly who have really struggled, and tragically passed away. It is a curse, and i just wish everybody well who gets it. Stay hydrated, stay rested, and wish them the best. James i second those erik i second those wishes. Ray dalio told me yesterday that the is much worse than the 2008 financial crisis. What kind of basecase functions are you making at this point for the recession and the recovery . James im not sure i agree with that. , the gdpmic impact decline is obviously much worse, but it is so specific and it is built around the virus. What sort of world will we have when we have immunity from it, when we have the right testing . Theres so many unknowns now whereas back into thousand eight, it was a collapse of the whole financial system. Had the system not been rescued, who knows what longterm damage, multidecade might have been to the economies . Truly tragice both situations. From our perspective and running a company, theres a few things youve got to focus on. Number one, weve got millions of clients trading trillions of dollars around the world. Our plant has to work. We have to be able to facilitate clients doing that so that they can manage their businesses. They have to have the ability to manage their own liquidity and funding and capital needs, and we play a Critical Role in that. The number one equities player in the world, one of the largest Capital Markets businesses, etc. So the plant has to work. And thank god, with 90 of our employees at home, we had almost no issues. That is just a roaracle testament to the tech and ops teams a remarkable testament to the tech and ops teams at this place. We cut back our buyback to zero. We thought it was best to preserve capital to support our clients in need. We are obviously doing everything through our communities and organizations like ours that are large and have resources should be doing. The third thing is to make sure that our teams are properly coordinated, given the remote isolation everyone is going through. We spent an enormous amount of time communicating with them, setting up plans. What would it be like to bring people back to work . Starting to thing about what the future might look like. Erik it is clearly not as bad, or at least you do not think it will be as bad, for Morgan Stanley, or for the banking industry, as the 2008 crisis. What about the broader economy . 5 Million People filed for on a point last week, in excess of 22 million since this began. How do you fathom or even model the kind of dislocation unemployment on that scale is going to produce . Be shocked to the Global Economic system is something we havent seen since the great depression, and is far more dramatic than what occurred during the financial crisis. And in addition, we have this Massive Health crisis which is working its way around the world, with at times devastating consequences. You cant model this. What youve got to do is preserve your capital, make sure you are wellpositioned to deal with the risk, understand the risk you are taking on as a business, and manage your way. Hrough that we have daily operating committee calls, risk many calls constantly. The whole team is organized around how we ensure that we are doing our job for our clients, and that Morgan Stanley remains stable during a period of incredible dislocation. Vonnie Morgan StanleyCeo James Gorman earlier on bloomberg tv. Spend as much as you can come about keep the receipts. That is the message from the International Monetary fund today as it reinforces the point that this crisis is like no other. The imf is Forecasting Global gdp contraction a 3 this year, a plunge in global trade volume of 11 . So far, more than 100 countries have asked for assistance. Imf and world bank are implement in a debt moratorium for these countries they help until at least the end of the year. Imf managing director Kristalina Georgieva joins me from the virtual Spring Meeting in washington, d. C. Let me ask you about the sdrs. Youve just said you are looking into trying to use them, what you have already for developing countries. At the same time, you have called on the g20 to support the creation of more special drawing rights. The Trump Administration is not on board. Can you change the white houses mind . Ms. Georgieva what i want to start from is that where forybody is on board is strong, Decisive Action now. We do have 1 trillion lending , and we got the full endorsement of the government telling us, lean forward with what you have. We are doing exactly that. We are establishing our emergency financing. We are taking very Decisive Actions on expanding what we have, like the creation of shortterm liquidy lines, and in addition to that, we are mobilizing concessional financing for our low income members. What impressed me tremendously are making thee call for 17 billion to increase concessional financing. I made this call yesterday. Today we got 70 of the funding secured. Sdrs, thees to consensus is not there, but where we heard encouragement in the spirit of do what you can intos to look more closely existing sdrs. Eventually economies dont need them. Developing countries need them. The question is how to create a bridge so we can move resources, more liquidity support to emerging markets. Work, we needour to recognize that the problem is gigantic, the resources we have to deploy significant, and we need to move with what we have very rapidly. Vonnie so far, at least by the end of april, you will have helped 50 countries, but more than 100 have asked for assistance, and there is a hierarchy. What do you need from private creditors, for example, in order to do more for those countries you havent yet been able to help . Ms. Georgieva what we achieved during this week is quite incredible. We got official bilateral creditors to agree on a standstill in the context of g20. Have the gulf countries, china, and the all coming together to provide breathing members. Our poorest in that call, we also turned to the private creditors, and we , andsking them to step up in the terms of the official bilateral creditors, to also ease the debt burden on low and middle income countries. We need to recognize that this is a highly uncertain environment. We need to carefully watch how the crisis evolves. As theyections are dire are, but epidemiologists are telling us it may get even worse, and therefore, as we look into this picture, we have to bring everybody on board. We need to make sure that we are all in this together because isuidity problems certainly a much bigger problem. We have to prevent that from happening. Vonnie and remittances are becoming a huge problem as well. I know that the amount of remittances also plays a role in your hierarchy of assistance. The trouble with remittances if they are also putting pressure on currencies, and em currencies are beginning. Do you anticipate any Asian Countries looking for help from the imf and world bank . Ms. Georgieva at this point, what we are seeing is asia is staying flat. In other words, we are not projecting negative growth for asia as we do for the world as a whole. We do have in asia some countries that have built since the Global Financial crisis strong buffers, and that helps them now in this more difficult time. But of course, we are there for the membership, and actually creating a shortterm liquidity line is something we believe is very helpful for strong countries. They may experience shortterm liquidity pressure, and then we can help with that. In terms of the requests that are coming to the fund, i can they are many low income countries, but also some middle income country saying we want to get that additional theion, or they are seeing dramatic developments because of their economies being more dependent on hard hit sectors, be it tourism, or because of the point you made in the beginning, remittances shrinking or even drying up. We are there for the whole membership. And let me make one very important point. Bys is not a crisis caused bad governance. It is a crisis caused by pandemic. , there is noense stigma coming to the imf. Is ergency assistance the only thing we are asking is spend money for your doctors and nurses and to protect Vulnerable People in sectors of the economy. Vonnie speaking of middle income countries, do you think europe should consider seriously a joint bond issuance debt mutual is a debt mutualization . Ms. Georgieva we strongly endorse the steps that have been individualrope by European Countries, but also by the European Central bank and the european institutions. Large, appropriately so, and they are done with good targeting, as well as with the temporary nature of some of these measures. Secondly, europe already has some mutualization through the european stability mechanism, and also vonnie sure, but corona bonds are a hot topic. Ms. Georgieva and three, the European Countries that are actually debating how they can vide more precautionary more of a buffer against this crisis, as you know, the debate is ongoing to europe. Everybody who knows europe knows that sometimes it takes a while for countries to come together. My conviction is that europe will stand together in the face of this crisis. Vonnie ok. That is a positive outcome, i guess. Talk to us about argentina. We are expecting the offer will be made for foreign creditors today for 69 billion. Have you spoken with the finance minister at all about this . In georgieva my team is close communication with minister guzman. I have not spoken to him personally recently, but i have been into munication with him multiple times. Ash have been in communication with him multiple times have been in communication with him multiple times. What i can say is that argentina has taken strong measures in the face of covid19, despite the difficulties the country has had. Second, that they are acting in good faith. They are going to put in an offer because they do not want to default. They want to find a pathway to an agreement with their creditors. Third, that we need to all recognize the world has changed, and countries that were with difficulties before are having even more difficulties now. Argentina, andto i do hope that they would be a constructive engagement. Of course, it is for argentina to negotiate with the creditors. But it would be good for argentina and for everybody in this incredibly uncertain environment if we had some good news coming. Vonnie if you could wave a magic wand, what would be the thing you would wish for in term of the sdrs right now . Do you need to expand the amount of money you have at your disposal, and if so, who can you count on for that . Ms. Georgieva well, let me say thati have full confidence for the next months when we are striving to stabilize the emergingmarket developing economies that are hit by this crisis, we do have financial strength that is sufficient to do our job. Let me remind everybody that before the Global Financial crisis, the imf had 250 billion dollars lending capacity. Now we have four times more. I am also convinced that the membership would come through should the conditions are more adverse. We have seen that we can find solutions to common problems effectively. We did it in the past. Today,done some of it raising concessional financing. If the needs are there, we will do it again. Vonnie thank you so much for all of your time today, coming to us from the virtual Imf World BankSpring Meeting 2020. That is the imf managing director Kristalina Georgieva. Still ahead, our exclusive interview with airbus ceo guillaume faury, who says the industry is facing its greatest crisis due to the coronavirus pandemic. This is bloomberg. Guy from london, im guy johnson, with vonnie quinn in new york. This is the european close on bloomberg markets. Here with the details, abigail doolittle. Abigail an hour ago, mixed to the upside and downside, but now the bulls are really trying to take it. The s p 500 now up 0. 6 . An hour ago, it had been down 0. 6 . Stocks in europe doing relatively well. The stoxx 600 up 0. 8 , the ftse 100 up 0. 7 . Investors continuing to digest the dismal Economic Data we have had of late as the new reality, the bulls are taking it. Where we have some bearish action is the euro. On the dollar against the dollar on the week, down. Investors going into the dollar on the dismal Economic Data, so something to Pay Attention to if europe continues to decline. Not really a risk on signal. Take a look at the commodity complex. Actually, the bulls are trying to take it here, too. Brent crude down about 1 . That continuing divergence there. Copper and gold also higher. On the year, commodities down in a huge way. To give you an idea, oil down more than 60 on the year. Gold up more than 10 . Finally, one of the big stories this week beyond the Economic Data, the earnings reports to come out of the banks. Across the board, really dismal reports. Profits plunging, big loanloss preserves. A bright spot is trading, but Morgan Stanley today even said they are not sure that trading strength can last, so the new reality of this data starting to hit, but right now, small gains. Vonnie thank you for that update. It is time for your latest wennberg business flash your latest Bloomberg Business flash. To slowlystarting ramp up operations in the United States. Strike tiffanys will be limited to Services Like drivethrough delivery and takeout. Amazon Ceo Jeff Bezos wants to test all employees for the coronavirus. That includes those with no symptoms. In a spelled out the steps letter to shareholders. He says the Company Already has a team of scientists, managers, and Software Engineers that hope to build a testing lab soon. Avis laboratories has suspended guidance because of uncertainty caused by the coronavirus. In the latest quarter, sales were weakest at the company diagnostic unit. That is likely to change. Abbott is introducing three coronavirus tests. One will tell if you have recovered from the disease. That is your latest Bloomberg Business flash. Guy lets take a look at what is happening with the markets in europe. We are off our lows.