Crudeng with oil, wti ps more than 100 to 1. 5 a barrel. Negative for the first time, june delivery contract, 21 a barrel. President trump says he will suspend immigration to the u. S. Over virus concerns as some states look to end the lockdown, plus u. S. Officials learned kim jongun was in Critical Condition following Cardiovascular Surgery last week. Washington is seeking clarity on the north Korean Leaders health. Just under an hour where from the start of cash equities trade. Lets look at futures after markets went negative with the plunging oil prices. You can see european futures now, down about 1. 5 to 2 . U. S. Futures, the cash trade close lower in new york yesterday so u. S. Futures are down a little less than european futures, but we are still seeing dow futures down two thirds of 1 . European equity markets on the oil price, some geopolitical news out of the korean peninsula, as well and perhaps a little focus on the data coming through. U. K. Data on joblessness coming through. Jobless claims rise by 12200 and the month of march. We also get the employment numbers, looking back to february. Unemployment, the rate is 4 , the estimate was 3. 9 , but that is february. That was before we saw a locked down the u. K. Because of coronavirus. Substantial outbreak of the coronavirus, even if there were cases. That is a glimpse of the u. K. Jobs market. The jobs retention scheme, the furloughing of staff rather than making them unemployed is the hope of the british government. Yesterday, we heard from the chancellor, saying employers of applied on people day one. Andt of uptake on day one they have expectations that will take more than the edge off the potential for a big surge in unemployment numbers. That is the picture in terms of the macro data out of the u. K. Youve got some corporate news. Matt im looking at lines right now out of t first Court Revenue drop in the french carmaker, 15. 2 billion euros. The company in its outlook, its fullyear outlook sees the auto europe,ndustry 25 in 10 in china. Pujot is planning a rebound in a chaotic environment according to the cfo, the company is maintaining its 2019 to 2021 goal for average omotive adjustment adjusted operating margins so maintaining its longerterm margin picture but says he does see the market down 25 for the industry in europe and 10 in china. A quick reassessment coming through from a number of corporates this morning. We will get to the corporate stories later. Lets get to the first word news. President trump says he will sign an executive order temporarily suspending immigration into the United States has the country tries to contain the spread of coronavirus. The president made the announcement on twitter and didnt offer specifics, but says the plan will also protect american jobs. U. K. , the chancellor is hitting back at criticism, saying there are encouraging signs the pandemic is slowing. The comments come as members of parliament are set to return and the likely top of the agenda, scrutinizing the governments response to the outbreak. Yesterday, they showed the number hospitalized in london is falling. And his rivalyahu have reached a short sharing agreement that brings the country near her to emerging from more of a year then paralysis. The former military chief refused but cited changed circumstances as the coronavirus healthy economy. Administrators at lloyds have taken control of the carrier carried before the announcement, Richard Branson said airlines in the u. K. And us trillions and australia wont survive without help. Asian stocks retreated with south korean shares underperforming and the dollar climbed after news of the u. S. Monitoring information surrounding the health of north koreas leader. The biggest news, of course come on the energy front, oil futures crashed down to negative territory yesterday and jumped back up today with june contracts under 21 a barrel. It is the may contract with care about, popping into positive territory after mondays shock wideout. Lets get into the markets with mark cudmore in singapore. It was incredibly dramatic last night to watch oil go negative. We were trading around 15 and dropped to negative 40 by the end of the session. What do you make of this dramatic drop . What does it mean for the market . First of all, it reflects the fact that the oil market is broken. The market has covered the fact that there was important technical factors to this contract delivery and the june contract has not collapsed so much, but it emphasizes the massive supply demand imbalance out there and shows downward pressures, and i also think it is very worrying and shows the problems weve got when he market is only being propped up by speculative demand. That means those people dont want delivery and when a market is very long in positioning, it means by default, the not forinal net flow will be selling. This market is under pressure and we know there will have to be lots of selling to speculators in the future. By ait can be absorbed pickup in demand in the economy is what bubbles are hoping for, but there are still not clear signs of the Global Economy picking up steam anytime soon. Robert burgess writing we need to take the oil price move seriously, but maybe not literally. Does to of what this other risk assets, we are seeing risk assets under pressure in the Asian Session but there is more to it than oil. Negative moves and substantial negative oil price in oil which has been recouped with another day of trading. Does that set us up for further risk off in the shortterm . Mark absolutely i think it does. Not only the fact that the oil market itself is broken and severe problems, which are well documented. It emphasizes they were at the extreme negative end of expectation, but also adds to the volatility across assets. It increases value of risk measures, which means it lowers the ability of banks and hedge funds to take more risks themselves and provide liquidity to the market, so there are knock on effects of deteriorated liquidity and other assets, which increases volatility and becomes a risk aversion event. The other thing to think about is it is a massive andnflationary impulse, that probably supports the idea that yields will stay low, it supports the bond market, and ultimately how that plays out into equity markets depends on other inflationary impulses going through. We will have supplyside inflation coming later on this year because many product riders providers, restaurants, bars, airline services, as many go bankrupt, it means the businesses that are left over have more pricing power. Normally, supplyside inflation spike would be a little bit of a negative for the economy overall and bad for consumers, but there is a chance when it is balanced out by the cheaper oil price that it may not be too bad of a net impact overall and make businesses that survive more profitable, and that is why there is an argument that in the broader bearish camp on risk assets, there is an argument that Certain Companies have a positive outlook here as long as they know they can survive the economic downturn, however long it lasts. Matt let me ask, it may be a market full of speculators, but if there were any physical players who needed oil last night, why in the heck didnt they pick it up at 30 a barrel . If the reason is there is simply no place to put it, why with the june contract be trading for 21 . Ill tell you one. Everyone who thought they had a any moment wast already buying it all the way down there, so the point is, people felt unwilling to take some oil at 20, a massive discount. Maybe i can squeeze in more at 15, maybe a 10. But it costs money to store oil. These are serious chemical products. They are dangerous. You cant just buy one and put it in your living room. It is a major hazardous material. Joe cant just go and buy oil. You need to have a secure facility to safely store them, to take delivery of excess oil if there is no place to safely store it. It is not as simple as driving up my truck and picking it up. That is not allowed. Matt im sure there were a lot of people thinking about it nonetheless. Anna you cant store oil in your living room. I read a lot of thought pieces yesterday saying there was demand for oil but nobody wanted now. Wants it now. Mark cudmore, thank you for your thoughts apart. This morning. You can weigh in on todays question of the day. What does negative oil mean for other risk assets . Mark was giving his thoughts. Reach out to us on the marcus lee markets live team on ib tv on your bloomberg. Oil as wtiwe discuss rebounds from a plummet to below zero for the first time ever. We will get perspective on how other assets will trade as a result of this real volatility in oil prices. This is bloomberg. Nobodys ever heard of negative oil before, but it is for sure. We will probably never see this again in my lifetime, but it is a reflection of how weak demand is and how tight the term structure has gotten. I think you could see this at next year coming into balance, but the fact of the matter Going Forward, north american ittion is structurally is the perfect storm for the Oil Producers out there and you are seeing that reflect in price today. And oil patch in this much trouble is not good for the u. S. Economy. Everyone will be taking signals from what is happening from them, if it isnt recovering, june could follow may. Matt that was u. S. President donald trump and guests yesterday commenting on the historic plunge in wt wti prices. The most traded Oil Contracts in the world dropped to 40 a barrel. It has now rebounded and the rebound is probably just as dramatic. Percent, more than a dollar a barrel. It is the first in history traders were willing to pay to get someone else to take their Oil Contracts. Nobody wanted to take delivery, nobody had any place to put it. Historical moment in markets, something i will probably never forget. I was glued to screens yesterday as we saw this unfolding before us and it raises so many questions. There are a ton of tankers, for example, sitting in the gulf, waiting to deliver their products but they have no place to put it. It raises a lot of geopolitical questions. What will happen . Will russia in saudi be unhappy . Donald trump said maybe the saudis were be able to send oil to the u. S. Anymore. It was jawdropping for market technicians, as well, as we saw plunge and the spread between wtis may and june contracts blowout to the most of all time. The june contract is trading above 20 a barrel, but that is likely to see downward pressure in coming weeks and there will be a violent rebalancing in american production has storage fills up, according to goldman sachs. Joining us now is the fx strategist at commerzbank. How do you see this huge oil move reverberate through other Asset Classes you cover . Well, supply in the fx markets have been relatively stable despite this volatility we are seeing on commodity markets. Obviously, some Commodity Currencies are a little bit more under pressure relative to other currencies, but no extraordinary moves and i think this was a reflection of the fact that these fx markets are any other slumping Economic Indicators in the last couple of days, reflection of the deep impact of the corona fire Coronavirus Crisis on demand and it adds to the picture that the market has gotten over the last couple of days from the Economic Data that we have already seen, but not necessarily game changing. What about emerging markets fx volatility. Is this going to be something that changes things because em fx, is it stabilizing . Who saw the worst quarter in more than four years in terms of the emfx performance and maybe things look a little better, maybe less volatile or does the oil price throw that into question again . I think it might. Can beid, the oil slump seen as an indicator of how bad this crisis will be economically speaking and so far, we have basically only been talking about how big the impact is going to be on industrial countries, the u. S. , europe, but also the big question is how they impact is it on emerging markets . Many emerging markets are oil exporters, so they will be. Ffected generally, export revenues from emerging markets will slump and i think this is something you will see in the next couple of days and weeks probably in the data coming from emerging markets, so fx volatility has stabilized a little, mainly because of the prospect of infection rates starting to fall , also because many governments are easing restriction measures, but i dont think we have seen the end of this, particularly for emerging markets. We dont know how big the impact is going to be and how they are going to handle export revenues and the slump in inflows, and this could cause a resurgence in volatility. We still havent seen truly coordinated action from the g20. Do you expect that some point some kind of geneva accord or is it not necessary . Thu lan i mean, we have seen some coordinated action, at least for the poorest countries of the world. That is a positive sign, but obviously these countries, they do not have International Financial markets, Capital Markets anyway. The question is how our emerging while atoing to fare some point, they not be able to tap these anymore. Im talking about countries like south africa and turkey. Weve already indications that they might get into trouble because south africa is already in talks with the imf and turkey has approached the g20 about a potential dialogue swap line, so there are going to be issues here. Certainlycountries, the imf, who would be the first to approach, might not have enough funds, so an International Solution certainly will be needed to be able to help these slightly larger emergingmarket countries. Certainly to prevent a debt crisis. Thu lan nguyen, joining us with the latest on the fx markets. Fx strategist at commerzbank. Something that has been moving through the Asian Session is dollar, a little stronger in the Asian Session. The korean won, weakened on the news u. S. Received news kim jongun was in Critical Condition after a guard undergoing heart surgery. We will bring you the latest on north koreas leader, next. This is bloomberg. Matt welcome back to bloomberg market the european open. Of cashfrom the start equity trading across the continent. Lets get the latest from north korea. The u. S. Has received information kim jongun was in Critical Condition after undergoing Cardiovascular Surgery last week. According to the south korean news agency, the north Korean Leader is now conduct normal activities. Joining us on the phone is chief north asia correspondent stephen engle. Bring us up to speed on what we know, what the supreme leaders condition is. Stephen we dont have a direct pipeline into north korea so there is a lot of speculation out there. That has sent markets into a tizzy in asia today. Cnn reporting the u. S. Was monitoring intelligence reports extrememay be in danger, after the surgery you mentioned. Saysouth korean government kim jongun is conducting normal activities. It does not necessarily cite how it knows that. The government says no unusual activity has been detected in north korea and the president ial blue house, the president ial office equivalent to the white house in seoul says it will have has no information on the rumors that have been surfacing by that were corroborated by an unnamed u. S. Official speaking on condition of anonymity to Bloomberg News that kim jongun was possibly in a critical state. All of the speculation really fired up last week with kim jongun not appearing at one of the most important events on the calendar in north korea, his grandfathers birthday, april 15, the day and the sun holiday. He was nowhere to be seen at the unification ministry. Inappropriate to speculate on his absence. Chiefstephen engle, ever north asia correspondent. We will get more on the spectacular moves in oil prices. Ar moves in oil prices. Anna welcome that to the European Market open. 30 minutes until the start of European Equity trading and it looks to be weaker with losses of 1. 5 on some major markets in europe. Lets look at what is coming up later on today. What is on the agenda for you, and we will get the data this morning. The survey out of germany which will provide clues for me health of europes largest economy as it prepares to ease restrictions on public life, certainly in some form, although some restrictions are staying in place in germany. The data point 10 00 a. M. U. K. Time. In the afternoon, watching for ecbs house member speaking at an event that has been organized by the adelphia economic forum. Early afternoon, the panel is refueling the economy, the role of banks in the covid19 era. That is fascinating, and lots of talk in markets yesterday about bankossibility of a bad being created. Maybe that is something he will be asked about and tech earnings. We will be looking for positive signs consumers are stuck at home. We will get numbers out of netflix this week included in that stayathome economy basket. Matt lets get the first word news. Are the top stories from your terminal. President donald trump says hell sign an executive order temporarily suspending immigration into the United States, that as the country tries to contain the spread of coronavirus. The president made the announcement on twitter and didnt offer specifics, but says the plan will also protect american jobs. Israeli Prime MinisterBenjamin Netanyahu and his rival have reached a powersharing emerges theat country from more than a year of political paralysis. Defenset former chief had refused to serve with netanyahu but cited changed circumstances as the coronavirus pummels the economy and health system. Angela merkel is urging caution. She doesnt want the country to move too quickly in relaxing its coronavirus restrictions. The chancellor says the country has achieved a lot, but hasnt yet reached its target. Governments around the world are trying to avoid a relapse in