And the strongest result in history amid the outbreak. Manus warm welcome to the show. We are deep in earnings season novell. Acola to the First Quarter comes in like this. 2. 06 billion. That is a beat. On the operating income side, 214 million dollars. Significants have a impact in the second quarter. That is what we already know. First Quarter Results show a 31 uplift in profitability. Nobel. Akzo you have the input side and the output side. Inputs are going to trickle down. What do you have . Good morning. Ericsson saying there is no reason to change its target for 2020 and 2022. Thats one of the lines from erickson. ,t sees the 2020 Market Growth lower growth in the second quarter. In terms of the First Quarter, 49. 8 billion Swedish Krona, a miss on the estimate of 51. 94, but there was some expectation the virus boost for more Telecom Equipment might materialize later. First quarter growth margin at 14. 4 . First quarter adjusted estimating profit at four point 6 billion Swedish Krona. It is concerned 5g investments in europe are delayed. That is an interesting line relating to the coronavirus. Numbers,t quarter adjusted operating profit comes in at a bit of a beat. The First Quarter gross margin at a beat as well. Change the targets for 2020 and 2022. Manus lets get into pharma. This is where people say you want to be positioned postcorona. Oche, a very comfortable beat for them on the First Quarter in terms of the overall sales. Line is drawn to outlook. The outlook is concerned confirmed based on the current backingnts, they are their current view, sticking firm with that. Weittle bit more on roche, will bring that to you. That is it for the moment. We have to get to oil. Just a look at the june contract this morning in london, down 13 at one juncture. Floating to hell, born out of a flood of oil. , i sawlook at june wti barrels. E on 6 million we are in a dangerous time as Morgan Stanley summit up sum it up. This market is beyond anybodys control. Nejra did you just bring up . 50 . Am processing that. Stunning moves in oil itself. This has reverberated across other markets. I saw a tweet from nora dale yesterday saying this seems to be the only asset that is accurately pricing Global Growth. Everything else is rigged by central banks. However, you have Jim Mccormick saying oil prices exaggerate the equityf global weakness, exaggerates the potential for recovery. Something to chew on. Read on the screen in asia. We saw the s p 500 drop 3 yesterday. We are actually edging into positive territory. They have been fluctuating overnight. Will they turn negative later . Will we see another negative down day in equities . A 600 year yield below handle yesterday. It stays there today. A touch of dollar strength. We already talked about oil, but we saw the wti may contract has rolled over into the june contract. We are seeing losses today, 10 a barrel. Brent about at that 21 year low, 16 a barrel. If you look at junk debt, we are not at those highs of 1100 basis points on a month ago. Let us get back to our top story. The u. S. Senate has passed a 484 billion deal that will restock an exhausted Business Aid Program and provide funds for Virus Testing at hospitals. The house expected to vote tomorrow. Donald trump has said he would sign it. It includes 320 billion for the Paycheck Protection Program, meant to help Small Businesses keep workers employed. Steven mnuchin says it would forably be the last trench the white house to recalibrate if needed. There will be a lot more. We are looking at this having a big impact. We would expect this is the last trench, but we can always reconsider that. Joining us from new york is Annmarie Hordern. What else do we know about the new round of stimulus . Click the big chunk is that 320 billion, the Paycheck Protection Program that was exhausted so quickly, just in two weeks. That is going to go to Small Businesses. The idea, that money is to keep workers employed. It has been devastating to look at the jobless claims. Millions of americans out of work. Senate, as many senators are at home. Thursday we have the house back in session for a formal vote. Forother thing is aid hospitals and money to bolster testing for the virus. Donald trump said yesterday the on this is just drying and they are going to be working on another stimulus package. That will help more on the front lines. That includes Grocery Store workers, drugstores, and others providing during the lockdown. This stimulus does not go on without controversy. We saw that throughout the week with big Public Companies taking on money, like shake shack. They are going to be returning loan. 10 million President Trump yesterday made a comment about harvard. Harvard has said they are using money that was directed for higher institutions. They said that money is going to students in financial need, but the criticism for harvards they have an endowment of more than 40 billion. There has been criticism, but this money going to the Paycheck Protection Program is definitely needed by Small Businesses in the United States. Manus the president also tweeted, this is yesterdays story about immigration, hes going to temporarily suspend immigration. Do we have more detail . What he is calling it is a 60 day pause. Wouldbe immigrants and also the green card process which is notoriously cumbersome. President trump is saying he wants to use this restriction because it would be unjust for americans laid off by the virus to be replaced by new immigrant labor. The scope and timeframe are limited, but there is concern among Company Looking to hire foreign workers. Donald trump said additional restrictions could be on the horizon. That is something everyone is going to be watching. Nejra Annmarie Hordern in new york. Thank you. Later we are going to be speaking as the house of representatives votes on the deal, we are going to speak with nancy pelosi. Is set forvernment its first Major Political test of the pandemic. A Virtual Parliament questioned by Video Conference with most mps taking part remotely. Foreign secretary dominic raab will be in the chamber. Pcv policymakers are holding a Conference Call today and they must discuss whether to accept junkrated debt as collateral. The move is intended to head off bonds cut below investment grade. Rating isedit set to be reviewed. Without concrete proposals on how to finance economic recovery fund, it raises the chance of another inconclusive showdown. A roadmap contains no details on the amount, specific objections, and the timeframe of the investment. Today, turkey is likely to lower its Interest Rates for an eight time in less than a year. The central bank has delivered a bigger than expected cut at most meetings since its new governor took the job last july. Consensus is for a 50 basis point move. The decision is at midday london time. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Manus there is only one discussion. It is the oil crisis. The opecplus ministers gathered for an impromptu call after the market collapsed. Things are out of their hands. We discuss up next. Manus this is bloomberg daybreak europe. Lets give you a snapshot of the risk in markets. Inextricably linked to oil. Asian stocks giving back a third of 1 . The s p 500, a great note coming from j. P. Morgan. 2021 forghs again in the s p futures. Stocks a buyerre ious trade . A vicar the dollar stronger this morning with the yen, a little bit of movement on dollaryen. 7 . X crude for june down the oil rout continues. Lowest in 21 years. Wti below zero for the first time in history. Futures for june, delivery fell. Selling pressure intensifies. The Oil Ministers of opecplus to hold a Conference Call tuesday to discuss the collapse in prices. Several producers held informal talks. Despite the group reaching a deal for record production cuts earlier this month, a closing statement signaled they are ready to settle they did not seem ready to settle on any new policy measures. We have Oil Volatility through the roof. Puts getting record highs and lows respectively. What i have created in my chart, it is in my terminal, is the relationship between the s p 500 and wti. I have tracked it over one year. What we are seeing is again there is that symbiotic relationship. It broke up, but it is back. How shaken are you by the risk redux in oil . Good morning. Regarding what you are mentioning, it is a stable correlation. To better price in the position on the one hand, but the ,volution of the oil price usually the demand depends on the Economic Situation, but it magnifies the collapse in demand for oil, it magnifies the Economic Cycle and the magnitude of Economic Cycles. Theres why would say yes, is a correlation, but be careful. Correlation is stable. The collapse we have in oil a new legld have down. Great to speak to you this morning. Yesterday, there were tweets saying oil is the only market that accurately reflects Global Growth because other assets are rigged by central banks. Pricesormick said oil exaggerate the level of global weakness, equity markets exaggerate the potential for recovery. Your view on which market is accurately reflecting Global Growth right now . Its a very good question. , there is no perfect answer to this key question. The market is dislocated by interventions. As a result, it is very difficult to find the asset class reflecting perfectly the Economic Situation, the dynamic Economic Situation. Have the equity markets and the oil market, to finetune what is priced by the market today. Way a better in a situation, better pricing of the Economic Situation in the currency markets. As currencies remain very strong , if you look at gold, we had some strength there. Probably i would look at Currency Exchange rates, ecially for most currencies. Manus you also talk about the. The need for liquidity and cash. What does that mean for what clients are doing . I would like to come back on your point by saying cash is king. Im not so sure about it. Thecially when you look at strategic approach. , richer you get from cash then when you stay invested in cash, you destroy your principal. Does not make sense to stay invested in cash. Cash just is a wait and see asset class, just for a very short period of time. Me, cash is not so much king for asset allocation. Longterm, taking profits today thanks to this very tough situation in which we are. Manus we will return to the topic. Bit later this morning, we are speaking to the executive director of the International Energy agency. Dont miss the interview. That is the group that demolished the demand expectations. Coming up, locked down and chill. Adding a Record Number of paid subscribers. Ib nejra and i suggestions for netflix. Nejra this is bloomberg daybreak europe. Its strongest result in history as it cashed in on lockdown around the world and added 15. 8 million paid subscribers. The streaming company also warned investors the surge may come at the expense of growth in the months ahead. Another interesting thing for netflix is that the unintended benefit from coronavirus when it positive quarter of Free Cash Flow since 2014. When you look at equity markets, what are you savoring . Do you have a preference for large caps in tech or are you focusing more on companies with strong Balance Sheets and Free Cash Flow . I would say both. Our locationrding within the equity markets, we prefer the most resilient companies. With low leverage in orders to make sure the company will be able to crush this task. The second thing i would like to mention about netflix as an pray forwe continue to growth. Within equity markets. Regarding netflix, it is something you can extend to innovative Companies Taking profits off this very touch period. , weuld say to summarize like a low leverage and we favor large stocks. One of the things we have been exploring throughout the week is the consistent threat of deflation. It is really apparent if you look at the breakevens. The 10 year breakevens below 1 . My question is, where do you want to avoid the deflation threat in the equity story . Once again, growth stories and growth stocks. Probably four years, but i companies in a winwin situation. To companies, the idea is to continue to inflate Balance Sheets. Margins are under pressure. Youwill need everything have it your disposal to reinflate your margins. Are veryechnologies helpful for all companies to help maintain high margins. , regardingr hand , maybe we need for example tracking as we do in china or south korea. Once again, the big tech players should be the winners. You need to use a very powerful macro computer. Ofrything is in favor innovative companies. Much. Thank you very the message is loud and clear. Stays withdonay nejra and i. We have another ceo conversation coming up. Coming up. Manus good morning from bloombergs middle east headquarters. It is daybreak europe. Brent crude falls to a more than two decade low as demand crush hits the global benchmark. An impromptu opecplus call gives us significant cuts, but no new action. The u. S. Sees its biggest daily tally of new Coronavirus Infections in almost two weeks. The Senate Passes a pandemic relief fund. Nancy pelosi joins the Bloomberg Team today. Netflix posts its strongest result in history. But warns of future subscriber slowing. Headwinds will have a significant impact. There lies the guidance. These results. Some are sinking fast and others are weathering on the vine in terms of guidance. Good morning. Nejra we have all been absolutely stunned by the moves in oil. We start to ask ourselves, how much is this going to reverberate through other markets . When you look at junk debts, the spreads widened. Drawn to a comment from Jim Mccormick saying oil prices exaggerate the level of global weakness, equity markets exaggerate the potential for recovery. Is the truth in between . Morgan,f you go to jp suppression of rates is ultimately going to drive much more than the loss of earnings. Eye of a we are in the risk redux. Brent is down a crushing 15 . Moves inanley say no supplies can offset this destruction. It is outside the control. Aat caught my eye is there is . 50 trade in 6 Million Barrels. There is a lumpy zero rate wti trade. The dollar. Es us to the s p 500 clawing onto a green gain. 2739 getting my words out. Will retest records in the first half of 2021. The dollar is bid as we see a haven. 10 year yields at the low of pretty much counting back to record lows. The fiveyear paper has made record lows. At the eye of the risk storm in the bond markets. I found those comments interesting because i saw other comments yesterday about the fact that oil is accurately reflecting Global Growth. Every other market is rigged by central banks. We will pick up on that is the show goes on. To an update on coronavirus, the u. S. Senate has passed a deal that will restock an exalted Small Business a program and provide more funds for Virus Testing at hospitals. The house is set to vote tomorrow and donald trump has said he would sign it. It includes money for the Paycheck Protection Program, meant to keep Small Business workers employed. Steven mnuchin said it would tranche butthe last the white house could recalibrate if needed. We look forward to this having a big impact on the economy. We expect this is the last trancvhe. We can always reconsider that. Quarter results down 38 year on year as the covid19 had a negative impact on the tv and media unit as well as lower pension refunds. Service operations are on the upside. Increase data traffic on six networks. 20 on normal. Lets get to the ceo, the acting president at the moment. First quarter earnings. Great to have you with us. Thank you for joining us. I had a question with a conversation with the man who used to run your company. He said the Biggest Issue for Telecoms Operators is the difficulty in monetizing the upsurge in line usage. Are you having difficulty taking advantage of the surges your seeing across the business . Good morning. That is exactly what we have been focusing on the last nine months. This is actually a good quarter. We grow our mobile business 1 it is ourur third consecutive quarter with growth. We have st