At when it came to adding subscribers but terrible in terms of revenue this quarter, down about 25 . A dismal day in the euro zone. These are the kind of numbers that should frighten markets. I think the ecb is doing the damage in europe, disappointing some people. The stoxx 600 is near session lows. We will get to that and i moment. Banks are down 3. 5 and maybe a little bit more. The eurodollar is down. Month, u. S. D of the stocks have had an absolutely cracking month. In europe,by 13 and nothing like that except for the dax which is up by around 10 . To the auto sector has come back. Vonnie lets get to where first guest because we want to go through some of the reasons why asset prices are at these levels. We had more out of the ecb earlier and we are joined by michael mckee. Michael, is the central bank keeping asset prices at this level the reason why we are bouncing so hard in the s p 500 . Michael its hard to tell. Many people are saying that. Newfed Just Announced a Loan Facility as part of its main street loan which has not even launched yet. On the basis of comments they got, the editing neutrons for businesses which are more highly levered or less credit worthy, a minimum of 500,000 will be acceptable and you will also be you to get the money if have less than 15,000 employees and certain criteria are met in terms of earnings. I advise everybody to read the term sheet. The banks can sell these loans to the fed. The original main street was at 95 and now they can sell 85 and the banks will retain 15 in this new tier of loans and we will see how attractive that is to banks once that starts up. These are for your loan so making the main Street Program available to more people. The fed press release as they are going to develop a program for nonprofits. Thats being thats been a big issue who say nonprofits need help as well so they are looking to expand the program to nonprofits but they dont have details on that. Theie this extends eligibility for the programs but its just one of the amount of ingrams the fed has unveiled munis and Investment Grade and high yields . Fed want to be dominant in these markets or does it indicate that it could be if it wanted to . Michael the fed wants to make sure these markets work. Jay powell was firm on this yesterday. These are not spending programs but lending programs in order to seen as athat its buyer of last resort so the markets will function. If you dont think somebody will take your paper, you dont want to buy it in the first place in the market seizes out. To make sureying that transactions continue. Apparently, when they got comments on the main Street Program which is the idea of lending to company smaller than the Paycheck Protection Program but not as large as big corporations that can finance themselves, they found another corner that needed to be served and thats the announcement today. Lets talk about the ecb. Im trying to understand exactly what the ecb did in totality postup it looks like a rate cut to me but the market seems disappointed with the new programs. Michael i think the market is trying to figure out everything that was announced. The ecb did not change his deposit rate remain refinance rate so the headline read no rate cut but really, what they are using is Monetary Policy is the targeted refinancing operations and they did cut the rate on that significantly. Thats kind of a new benchmark these days it seems. Those are loans to banks and then the bank lends that money to the Business World and if they do, they get a lower Interest Rate from the ecb and they can land at a higher rate so they profit off of that spread. Toy lowered the rate teltros 150 point lows even get down to negative 1 on a loan you are taking out in the introduced the pel whicht seems to be be open toit may nonbank lenders and it has fewer conditions and what you can do with the money. Taking seems to be policy in the direction of using banks to get money into the system rather than putting it out there directly. The euro zone rides on the banking sector. What was interesting is in the last crisis in the euro zone, the ecb used similar tactics. To looking at the peltro, maybe encourage banks to buy Government Debt as well. Is this part and parcel of what Christina Lagarde is signaling by providing the supercheap loans and reducing the criteria around them . They are keeping the spread a little tighter than maybe Christine Lagarde would have appreciated before a few weeks ago when she said it was not the ecbs job to keep the spreads even. Be that theyay will not have to spend on lending to buy sovereigns. And teltros are supposed to go into the economy not to make real loans but extend the economy. Pandemic Emergency Purchase Program that the ecb is using is designed to buy Government Debt. It still has a 750 billion euro cap but she made it clear that they would expand it if alsosary and they are being very flexible with jurisdictions which means we dont have to necessarily follow the capital key. We can buy as many bonds from any country as we want to when we will figure out how to make it fit under that later. If italy is in trouble, the ecb can buy italian bonds and bring down the spread to the extent that they need to and if they run out of money, they will increase the amount of money they will use. Vonnie thank you for that clarification. Bloombergk in on the first word news. China is rejecting claimed by President Trump that it deliberately mishandled the coronavirus. The president blamed beijings response on politics. The chinese want to see him lose the election. China does not want to interfere into an internal u. S. Affairs. The u. S. Oil industry is like to become the next sector to get a bailout. The Trump Administration may announce a rescue plan as soon as today. Oil companies could apply for loans and they might have to give financial stakes to the government. Thehead of the fda says agency is moving at lightning speed on an experimental coronavirus drug. They have reported encouraging drugs from a trial in the fda commissioner says the agency wants to see all the data before deciding whether to let the drug go to the market. Los angeles will become the first major American City to offer widespread coronavirus testing. For those who have symptoms to be prioritized. Day,l news, 24 hours powered by more than 2700 journalists. This is bloomberg. Vonnie live from new york, i am vonnie quinn. This is bloomberg markets. The latesta look at Business Stores in the news right now. Twitter has more users than ever. The coronavirus hit the advertising business hard. Down 27 percent in advertising yearoveryear. Twitter has 166 million users which is up 24 from last year. Mcdonalds says it has seen dramatic changes in customers. First Quarter Sales held at 4. 23 . Is planning to open 68 stores monday and lyft restrictions. The ceo says he expects the 775 stores will reopen within six weeks. Thats if the Coronavirus Infection rates continue to go down and state and local governments allow it. Thats your latest Bloomberg Business flash. Its been quite the bumpy ride already this morning for stocks. Major indices are mixed now with the nasdaq higher and the other two lower. Aylor its pretty risk off but some of the tech earnings are doing better than expected. You have the emerging markets index which is higher even with a stronger dollar. 10 of 1 . P 8 underperforming the broader income the broader index of the s p 500. Its the highest going back since march 11. A lot of this is related to the crude story. Crews gaining again today. Its up about 17 . You are to see the impact on the energy stocks. Shell is cutting their dividend for the First Time Since the Second World War and exxon mobil raising their dividend for the first time in 13 years all amid the energy crash. Thanks very much. Andclosure of many bars restaurants across the globe has lower sales. Will continue to drop and they are cutting costs. The ceo of key partly joins us on the line. Thank you for joining us. Lets talk about what is happening with the business. Are the Biggest Challenges you face now and how are your people . Thank you. Our people are fine. Many peoplee infected by the covid virus. Im happy to report that. Its a challenging time to the business. In all markets we are impacted to a greater or lesser extent and while we are starting to see signs of recovery in our largest market, china and initial signs of government cautiously lifting restrictions and other european markets, other markets remain low. Brewer ath for the this moment in time. Can you extrapolate from what you are seeing in china what lessons are you learning from the reopening we are seeing in china . We see signs of recovery, many bars and restaurants have reopened. Especially small bars and restaurants have less risk of spreading the virus. Thats where we see our business coming back but eager restaurants and bars are othercting distancing and things like Night Entertainment remain largely close. People are visiting bars and restaurants less frequently than what we have seen before covid. Vonnie you depend quite strongly on people drinking out so not necessarily the home segment of the population. Are you doing anything to increase your attractiveness to our customers who drink at home right now . 25 of our volume is coming from the home. We reengage in a different way with our consumers and customers. We see the consumers show up less frequent and move to wellknown brands. They want to be in the shop for a relatively short time and take the brand that they know well. No buyback so as a consequence, its a different mix in our portfolio. Doing too what are you offset the lost revenue from bars and restaurants and breweries who are not selling carlsberg right now . Can you offset that lost revenue . Broad, we have a very commercial support that means about our sales reps are business they would not normally go for. They go to retail shops and we move much more toward digital communication. The business is focusing on socializing because thats what beer is about. Suffers a bit from the. Urrent social distancing its beer is known for in person and this is been transferred online. We are basically redirecting our business toward at home. Do you think there is enough support currently for the bar and restaurant sectors . Is there anything you can do . Pubsw people who run around where i live in the u. K. And they have been struggling with the kegs they have and trying to find homes for those. What are you doing in terms of dealing with managing the inventory . Its tailormade, the kind of actions we do. Homeve been supporting the market is much as we can. Activations,ngful is an independent outlet so facilitating them and being able to process the orders. One is an idea called adopt a keg which is aimed at supporting the inventory by earning drinks to redeem when bars open again. Those have been wellreceived by the trade. Its been received well in the u. K. And denmark so we are engaging with our partners to help them through these difficult times including making sure they have fresh beer at the moment they will reopen again. Lets talk about what happens when economies reopen. I appreciate normality is probably a long ways off. You have one of the strongest Balance Sheets out there within the sector. How will you leverage that to take advantage of some of the longterm trends that will likely to be opened by covid19 . It is almost a privilege at this moment to have a strong Balance Sheet. We are weathering the storm in this amount of time. Have our ideas of what to do at the moment with some assets coming available. At this moment, we are fine. E focus on managing its an advantage to have a strong Balance Sheet at this moment in time. Sales in asia were actually quite slow. You have nearly 30 of your sales in asia. What are you doing to prepare for that kind of reopening environment . Asia is difficult because china is reopening with good figures coming out of china. Whether itrly to say is reloading the trade for good secondary sales. More positive signals coming from china. China andt in paul nepal and india are still in lockdown or just opening again so they are the cells is very slow. Vonnie we saw dismal gdp numbers out of europe. What are you doing to hold onto customers that may be switching to economy brands because of the coronavirus . The good news about the portfolio is we have quite a number of very strong local like the one in switzerland and one in sweden. Of when thererms is a crisis. You tend to choose the brands we know well. That they are less focused on premium parts of these brands. Changes inee some the portfolio and we prepare for that. Another part of the business we see growing well is the alcohol free beer. , very already a trend positive for beer producers but we see that accelerating a bit. If that is because of an underlying trend that people are more focused on health, we dont know yet. Maybe its too early. For ourpositive sign portfolio. Coming back to the issue of the Balance Sheet, are there opportunities out there . Are there any assets you are looking at and thinking about or wondering about whether or not there are trends you should latch onto. Any assets out there that you were looking at to say that looks good now and thats a trend to take advantage . Disappointed if you dont look at it and you would be surprised to talk about it. It is good to have a strong alance sheet, it gives us rebirth but we are very much focused on preparing repairing error business in the stores. Vonnie our thanks to you. The breaking news from the Federal Reserve are the hour, they are expanding the scope of its main Street Lending which wille mslp help more borrowers become eligible to help the economy at this difficult time of coronavirus. The 10 year yield is moving within a basis or two. Dismal Economic Data earlier particular consuming spending which is down 7. 5 and personal income is down 2 . A couple of stocks that are andng, tesla is up 4 twitter has been pretty volatile today, down. Still ahead, we will preview the csrt Quarter Results with eight media and entertainment analyst. Media companies have been reporting. This is bloomberg. Vonnie in new york, im vonnie quinn, alongside guy johnson in london. This is bloomberg markets. Amazon is facing criticism for how it is handling Worker Protections. We are joined for all of this i tuna amobi, cfra analyst. Itself, what will the street to looking for in terms of balancing Worker Protections with looking for better sales growth . Right. Good morning, and thanks for having me. Quarter,bviously this amazon is wellpositioned from its ecommerce business. You always hear a lot of noise about things like this, health is whose and show on Health Issues and so on. I think the company has done a good job navigating those. I would view those as headline risk as opposed to having any major impact in terms of this quarter, which is that they are probably going to beat expectations based on the guidance they provided last time. We know that there is a major spike in ecommerce volumes. The prime membership should benefit significantly from and forgetfinement, the amazon web services, which should be a major for sherry of this transition, as we saw from microsofts Cloud Business yesterday. Theres a lot of powerful headwinds that should really bode well for the q1 results for amazon. Vonnie right. Amazon seems to be in the winning camp in many of these niches. Overall, we have seen several media stocks already report. Who will be the winners, and who will be the losers . Tuna thats a great question. We just got out of the comcast earnings call. Clearly, the broadband business, companies that have highspeed internet should benefit from this surge in traffic. We are seeing streaming platforms, we just talked about amazon, guys like netflix and comcast going ahead to launch peacock in this environment really spoke to how trends are benefiting from these tailwinds. That havee companies themepark exposures, Live Entertainment that have really been hit hard. The advertising is down dramatically. That should affect media companies. I thing it is a mixed bag at this point, depending on the portfolio. The more longterm revenue streams, multiaffiliate deals, those seem to be relatively immune to this cyclicality. I think as with think about the , the questionar becomes how long the recovery takes, and no one really knows. For the most part, investors should be looking ahead to 2021 to see which of these companies are best positioned, and we think this companys have stable we think those companies that have stable. Usinesses guy i want to put these two subjects together. The prime video business that amazon has come a competition is heating up. Clearly it is a high cost part of the business. It, given theue multiples being applied elsewhere . Have that is a question we tried to navigate. One thing we know is that the crime Media Business is actually a major catalyst for the prime subscriber business, prime subscriptions. The Video Service is in a is a perk which we would expect to accelerate in this environment. You cant really value it at this point as an independent, standalone business. Theres not enough granularity to do that. That being said, theres a lot of intangibles that they are getting from the ability to provide that is a perk alongside somebody others within the prime subscription, and that is why they are spending heavily in content and whatnot. This year, we think that content spending could be north of 6 bi