Coronavirus in new york, Governor Andrew Cuomo saying there have been 481 deaths in the last 24 hours, holding below 500. Also some stabilization to hospitalizations. They are once again basically flat. We had about 1800 yesterday. Governor cuomo saying the curve is on the way down, but at the same time, we need to keep ourselves very vigilant. About 1300 people hospitalized with coronavirus yesterday. Hospitalizations basically flat. Overall virus deaths in new york , now 14,828. Meantime, the markets are registering losses today as well. The s p 500 down 2. 7 right now. Energy companies not doing so well. Neither our travel Companies Like expedia. Crude oil is in a category of its own right now. 3. 31 is what the current months contract is trading at. The dollar index might be more interesting to look at in some sense, at 100. 18. Some strengthening, including the hong kong dollar, which had to defend its peg because it reached the upper bound today. Above 47. The vix bpi ont months to front months wti no longer negative as it was yesterday, but that brutal selling we saw still reverberating. Joining us on the from from oslo headornar tonhaugen, the of oil markets at rystad energy. Lets talk about the implications. What, first of all, was your reaction to seeing wti going negative . Bjornar when i first saw that it went negative, i was actually surprised. About theen talking possibility of going negative, but the further drop down to 40 was totally mindboggling as well. Guy what do you think the implications of that move our . Bjornar i dont think necessarily that it is such a matter of longterm implications. It is actually just a reflection and broken oil markets. I think the market suddenly yesterday realized that the remaining crude Storage Capacity in the United States, where we do have most of the remaining Storage Capacity left, is than what manyr had anticipated. The you know you have physical product soon expiring, and with the prospect of seeing full practical tank tops in the u. S. Onshore shore storage, especially in cushing, you can have dramatic price movements because essentially, there are so many sellers, and theres been no buyers because the problem is where do i put this oil that im not going to consume in the month of may. Vonnie what actually happens when some of this oil begins to come out of storage, begins to come off ships in the water . Than . Appens to prices theres going to be so much of it, and there will still be oil coming out of the ground. Bjornar that is totally true. We will be accumulating storage everywhere at the fastest pace ever in history in the oil market. Of course, before we can get crude prices and the market functioning but to a more normal state of affairs, we also need to draw down these accumulated inventories. A shape of will have the curve that will be held down and stay in contango for a while while we draw down the excess inventory after we rebalance supply and demand and start to draw down inventories again. Vonnie if the president gets involved, what would you advise him to do . Hes threatening, or maybe promising, or floating the idea to oil and Gas Producers and so on. Would refrainnk i from giving him too much clear advice come but the challenge essentially for the physical oil markets now in the United States is that the demand losses because of the quarantine effect due to covid19 are so much uptodaten the supply reductions, leading to a tremendous oversupply situation with a record pace of stock builds of unsold oil. That will essentially need to work its way through the market until we actually see some additional production curtailment or shut ins. Work Market Forces need to , and a Strategic Storage fill would only help a little bit because of the size of the oversupply situation. Globally, we are talking about Something Like 20 Million Barrels a day of oil market imbalance. Before now, supplies reduced first through the opec cuts that come into effect around may 1, and also additional production shut ins during the Second Quarter. Start to economies reopen, they are going to be faced with very low oil prices. How much extra demand do you think those Lower Oil Prices will generate . Will people drive further . Theyve presumably got a lot of things they need to do after being cooped up at home for a lot longer. Do you think that will, to a certain extent, feed into these stories we are currently seeing . Or do you think peoples behavior is going to be changed over the more medium and long term, and as a result of which, we need to fundamentally reassess what longterm demand for oil is likely to be . Bjornar that is a very good question. Essentially we are talking about two scenarios. One scenario after this very deep recession for the Global Economy, where people are losing their jobs, but at the same time, have very cheap fuel to put in their cars or airplanes, that normally would provide an additional impetus for the demand recovery. But this time around, the cause of the downturn in demand is essentially a pandemic, and the resulting, longer lasting on behavioral change is what the jury is still out on. I think we might not necessarily see jet fuel demand coming back maybe for a few , such ass because these web meetings that business has been forced to have now seem to be working quite well now. Theres risk of a more permanent behavioral change in the individuals about taking Long Distance travel now with the risk of this disease around them. Guy it is going to be interesting to see what impact it has on the sustainability debate and transition away from fossil fuels. That debate for another day. Bjornar10 haugen tonhaugen, thank you very much indeed for spending time with us. Lets check where markets sit right now, equities to bonds to commodities. Lets go to Abigail Doolittle. Abigail not surprisingly, we do have some volatility for stocks coming off of that will volatility. Lets take a look at what is happening in the u. S. And europe. The s p 500 and the nasdaq both at session lows. , the p 500 down 2. 8 nasdaq down 3. 5 . Although, given the crash weve had in crude, you can make the case that theres a bit of divergence between what the economic pictures are being priced in buy stocks, which would seem to be still that vshaped or ushaped recovery, whereas oil does seem to be pointed more towards a deep recession, so maybe stocks catching up to that the you a little bit today. The stoxx 600 in the ftse 100 also down sharply. As for oil, lets take a look at a two day chart. This is simply extraordinary. I never thought i would have the opportunity to talk about a negative priced oil contract. The intraday low down about 40 . You can see this massive plunge in crude oil having to do with the Technical Trading issues, and of course, the storage that you all were talking about. At the end of the day, this virus situation absolutely causing demand destruction. The question is whether or not it will come back. If i look at the june contract it has plunged just above 14 per contract. It will be interesting to see how that plays out. It is certainly bleeding even more so into the commodity complex. The commodity complex coming off the lows, at the lows down well more than 3 . Topper down about 8 , headed towards its worst day since 2009. Gold has been down more than 2 . Those risk assets are off the lows, but nonetheless, when you see this cross asset class volatility, it tends to gyrate, so these sorts of losses we are seeing here we are now seeing in stocks. That may continue to move through for a number of days if prior periods of cross asset viability cross asset volatility are a tell. We have netflix earnings out after the bell. The big question is whether or not that will be reflected in their numbers. Will they gain a number of subscribers that is expected . Either way, there is expected to be huge volatility options pricing and after this earnings report, a 15 move either up or down. That would be the largest if it does happen since 2016. It would certainly provide a tell on some of these stayathome stocks, whether the results are what wall street has been pricing in. Vonnie Abigail Doolittle, thank you. I want to bring you nasa more coronavirus headlines. A huge jump in the united someom ring you now more coronavirus headlines. A huge jump in the united 823, so a tough day in both United Kingdom and in new york in the last way for hours. Coming up, we speak to cocacolas cfo john murphy on how the pandemic is affecting the Beverage Company and how long the impact will last. Thats next. This is bloomberg. Guy from london, im guy johnson, was vonnie quinn in new york. This is the european close on bloomberg markets. Lets check in on the bloomberg first word news with ritika gupta. Ritika President Trump pledging to make money available to the oil industry. He tweeted today hes asked cabinet members to come up with a plan to prevent the loss of jobs. That comes a day after a key Oil Futures Contract plunged below zero for the first time. Senate democratic leader chuck onumer says there is a deal the emergency comic rescue package. President trump says the two sides are close. This could be up to 500 billion for the depleted Small Business a program. It would also provide money for overwhelmed hospitals and coronavirus testing. President trump says he will temporarily suspend immigration to the u. S. That came in a late night tweet. The president wants to contain the spread of the coronavirus. He also said the move would protect jobs of american citizens. Theres no word on how long it would last or who would be affected. There is speculation about the health of north koreas kim jongun. U. S. Officials got word he was in Critical Condition after Cardiovascular Surgery. The white house is said to have been told that kim took a turn for the worst. Kim is 36. He missed a recent Holiday Celebration in pyongyang. 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. Vonnie thank you for that. Much appreciated. The coronavirus pandemic making it impossible for companies to forecast their performance for the rest of the year, and that includes cocacola, warning that the effect on the Second Quarter will be material. Joining us on the phone is cocacolas cfo, john murphy. Thanks for joining. Congratulations on the quarter. A really difficult quarter to get through. I want to ask you, i am sure you have stress tested your Balance Sheet for the worst Case Scenario. What does that look like, the worst Case Scenario for cocacola, given that 40 of your sales are out of restaurants and so forth . Year and aarted the strong position, both operationally and with our Balance Sheet. Weve taken decisive steps in the month of march to strengthen our Liquidity Position in the event of any scenario for the rest of the year. With regards to what we see as we talk this morning, we see a difficult q2 ahead. The second half of the year, i wouldnt want to speculate quite yet we are getting ready to be able to pivot for any kind of scenario. Given that our business is global in nature, i would expect the recovery to be gradual and to take different shapes and forms in different parts of the world. Be all aroundl staying agile and flexible to meet the particular situations that we see around the world. Vonnie so far, youve reported a 25 drop in global sales. What could you withstand without being severely stressed . ,ould you withstand a 40 drop a 50 drop . Ahn i think we can withstand q2, as weverop in outlined. For the second half of the year, we are prepared for a worstCase Scenario. We do expect gradual recoveries, though, around the world, and we will be wellpositioned. Flex import to have the ability for the worst case, and to be able to invest and reengage as appropriate, and we will be prepared for whichever scenario comes through. Guy good morning. Can we talk about what the word temporary means . This morning, you said that the business leaves the pressure on the business is temporary and remains optimistic on seeing sequential improvements in the back half of 2020. What do using the longterm effect of the virus is going to be on all of our willingness to go to restaurants and drink your products when we are there . I am curious as to how you think the longterm changes in Consumer Behavior are going to affect your business. Sure, i think we are going to see some behavior changes around the world with respect to how people shop and how they eat and drink externally. I think with regards to the Beverage Industry, we are wellpositioned to adapt as we being a whether it is more active player in the digital channels, partnering more with take and Home Delivery , or whether it is adapting as needs be in the restaurant environment. What i do think we will see is a gradual recovery starting in the second half of the year, going into 2021, and more time to adapt is appropriate not only for our business, but for other industries that are dependent on the away from home channels. Guy lets focus a little bit on what is happened specifically in the Restaurant Business and where we are going next. Capableack is obviously of making the system work for it. It is giving money back as a result of money it took from government in the United States to protect its business. But smaller restaurants are really going to struggle. I am wondering whether or not you think government both in the u. S. And elsewhere around the world is doing enough to protect those Small Businesses. Operating with very slim Balance Sheets, and as a result of which, i am wondering how big a portion they make of your business, whether or not you think government could do more, and what you think the longterm future for the Restaurant Industry is, and whether it will continue to consolidate around some of the bigger brands. Foremost, iand think we will see a lot of tossure on smaller players manage through this crisis, particularly if it extends into the second half of the year. In previous crises around the world, we see consolidation. We do see stronger players healthier people are going into a crisis like this, the better chance they have of coming out stronger. With regards to the shape and variety of support provided around the world, i think it is different could buy market. I think in a number of countries, we see that working well. In others, it is a mixed bag. Sometimes i think the intent of the programs get caught up a little bit with the bureaucracy. Overall, i think that governments at both the national and state levels are working even harder during this to support the smaller players, albeit if not perfect. Vonnie another headwind for you guys is currency. Obviously, there have been huge moves in emergingmarket currencies, and now we have the oil problem, although it may not be as much a problem for cocacola. You have said that each economy is going to come out of this very differently, so you have to manage for all of these stages. Where are you most optimistic about cocacolas operations . What continents, what countries . A global perspective, first and foremost, our approach has been and will continue to be to compete and to win locally. I think we benefit from the fact that all of our beverages are thatced locally, so we see being a particular strength in from thety to emerge prices as it plays out in different markets around the world. With respect to the longerterm outlook, i think we will continue to benefit from having the portfolio that is strong in both the developed and developing markets. We will play the portfolio game as we come through this, and if needs be, we need to rely a look bit more on the developed world in the shortterm, we will adjust as appropriate. I expect longerterm, we will continue to benefit from expansion in the Beverage Industry and in the developing markets. Vonnie what about employees and workers . Are there plans in place to keep them safe . John the short answer is yes. Weve been really impressed with the manner in which our partners around the world have focused on their people from all on their customers, and on their communities. With respect to our people, particularly those working on the front lines, we are fortunate that our system bedrock is quality. We have taken a lot of steps to make sure that people are safe, that they have good Protection Measures in the workplace, and that our products are safe also. Our bottling partners are adapting as they need to with respect to their local market conditions, and i expect them to pull through in a very effective manner. Guy ive got 30 seconds left. Any impact on the brand as a result of the olympics being postponed, and other sporting events . John no, not in the slightest. I think the olympics being postponed is something that is just pushing out the opportunity 2021, and in the meantime, we have taken appropriate steps to adapt our programs for this year, but the brand remains strong and is wellsuited to managing through these times. Guy thanks for your time today. We greatly appreciate it. John murphy, the cfo at cocacola. A quick look at markets in europe, equity markets in particular, as we head towards the close in a few minutes. We are negative across the board, as you can see, two point 5 to 3. 5 . Oil and gas and mining stocks very much under pressure. Th