The 10 year yield was up 72 basis points after that refunding announcement and the new twentyyear issuance will be bigger than the primary dealers were thinking. The median estimate was for around 13 billion but thats now 20 billion worth of twentyyear bonds being issued. Demand for them and now we are back to the stock market and we are seeing the s p 1 sondred up 4 10 of its recovered those earlier gains. The nasdaq is running away once again, up 1. 2 with several thats are credited for including the lights of beyond meat and stocks you would not normally associate with a climb. The dollar index is above 100, continuing to strengthen but not a huge amount of movement in the yuan. Crude oil is back at the lows of the session, down 2. 4 after we saw the build coming in lighter than the market had anticipated. Quite a hefty build last week but the markets recovered slightly and we are back down almost 4. 5 . The European Data continues to be grim. The European Commission says they could be facing its deepest economic downturn in history. Thelatest forecast predicts euro area gdp will shrink by 7. 7 as unemployment and debt surges. The European CommissionVice President in charge of economic data, lets listen to what they had to talk about. Next are talking about the eu budget for seven years. Lookingof this, we are also at how to support the investment and equity of companies. We have provided major liquidity in suchto companies but a deep recession, we also need to see how we can provide indirect equity response. Lets get an assessment of what is happening here. I dont know which way to look. I have bad data in the Rearview Mirror and ive been told by the European Commission that things in europe will be bad. Yet, we are getting news today out of germany about the reopening of the economy and then news out of the u. K. On a similar story sunday. Economies are starting to get back some of their potential. Nevertheless, it will be a slow and grinding recovery. As we start to focus on what that opening will look like, do i need to start rethinking my Asset Allocation story . Should i be defensive . Do i need to start getting more aggressive and buying the more beaten up stocks that havent participated in the recent rally . The time for that will come but we are not there yet. Some of your airlines and retailers are the most beaten up sectors and you want to be more confident than we are today about how quickly the lockdown measures can be lifted. My sense is that when governments approach the challenge, they will be aware of the ramifications of having to reimplement a second wave of lockdowns on the corporate mindset as well. What theyve told the corporate sector until now is that you have to face this oneoff hit to activity and you have to try to survive that with a significant amount of government support. Clearly, as corporate consider the idea of rolling waves of lockdowns up until the point when we have a vaccine, that will have significant ramifications, particularly as they approach the hiring and the potential for lasting effect on the labor market. Ultimately, politicians will have to tread extremely carefully here. Sciences indicating a rolling story is likely to be the one we have to deal with, kind of stop start. What do i do . Do i stick with my defensive markets . Ick with bond how should i position if i think its one and done or if i think there is a rolling story coming toward me in terms of the stock with economic narrative . Narrative, ive been looking for the markets that have the best backstop from a central banks. Thats where this market narrative is being changed most rapidly over the past few weeks. There is explicit backing from the fed to look at credit markets. I think that a significant so im most comfortable keeping risks at the moment areas like investmentgrade credit where spreads could widen if we get more news particular you on the medical side but i more comfortable that there is a backstop to those prices. If you are looking at a more optimistic view, clearly in equities, there are opportunities and i think then maybe you can look at the emerging markets a bit more. Likee clear areas china looking interesting. They are starting from cheap valuation so i think there is perhaps a more interesting possibility to express a more positive take on the list of lockdown measures. Vonnie on u. S. Equities, you had said you preferred the u. S. To some of the more developed nations in terms of equities because of dividend resilience, are you seeing the kind of dividend resilience you thought you would throughout the earnings season . It feels Many Companies are slashing are getting rid of their dividends. Compared to europe or the u. K. , the u. S. Dividend outlook looks quite a bit stronger. I think its partly down to the lower payout ratios and the more aggressive use of buybacks in the u. S. You have that element of a buffer for corporates to be working through before they start to be cutting dividends. From a political perspective, the pressure has been much more on corporates to focus on stopping buybacks. The Banking Sector is a good example of that in comparison to european banks where clearly, the regulatory pressure is stronger to stock dividends. On a relative basis, investors are desperate for income and the have to look for it somewhere. I think the u. S. Equity market relative to other regions provides some decent Income Opportunities still. Vonnie you mentioned emerging markets but they have taken some beeneven if it hasnt reflected in coronavirus cases. Equities, credit, currency has been shaken to the core in emerging markets. What makes you so confident in them given that we are now seeing a resurgence of the tray dynamics . Of the traded dynamics . Im not overly positive on emerging markets. Its an interesting place to look to express a more positive view on the potential for a rebound in 2020. Im not convinced that emerging markets stand to suffer disproportionately from the trade rhetoric. Its been a shift in those economies over the past couple of years toward the more consumer led model, much more focused on domestic demand and less reliant on exports and manufacturing. One of the lessons for me from last year, from an economic standpoint, they are much better integrated than we previously expected against the slowdown in global trade if we see that pickup again. Will leave it there, thank you. Lets check what is happening with markets right now. Katie we have been fluctuating all session and we are looking for third day of gains for the u. S. Major averages. The only one that is outperforming is the nasdaq which is higher by about 1 . Its an equity market weighing economies potentially reopening with President Trump pushing for that overnight against a grim economic backdrop. Adp printn abysmal out so trying to weigh the fundamentals. That applies to earnings because if you look at how far stocks have run over the course of the past month, the world index was up 26 since its march low and earnings estimates have been revised dramatically lower. The s p 500 is trading at a price earnings multiple of 20 time so there is a bit of a disconnect when it comes to the fundamentals. Not all earnings are looking bad. There are some pretty strong ones today including gm with 6 , stock higher more than double what analysts were expected thanks to pickup trucks. Shares highercds and comp sales were up higher than expected thanks to people buying drugs or products and filling prescriptions ahead of the coronavirus pandemic. Wendys is higher by 7 after analysts said the stunning pace of its recovery in sales in the recent weeks is the reason why. Withlso have disney higher a 70 drop in revenue but disney plus now has 54. 5 million subscribers. Vonnie thank you. Next, a bloomberg exclusive, insight on how the coronavirus pandemic is affecting the shipping industry from the cbo of have pegged hapaglloyd. Also the u. K. Trade commissioner. This is bloomberg. Guy welcome back to the european close. And figurehe latest out what the bloomberg first word news looks like. Mark thank you very much. U. S. Companies cut 20. 2 million jobs last month according to adp research institute. Its the most in records dating back to 2002 and it does not include the impact of the coronavirus outbreak that occurred later in april. The government comes out with his monthly jobs report on friday. President trump is preparing for what he calls phase two of the u. S. Response to the pandemic. He told a crowd in phoenix that americans should start returning to their everyday lives even if that leads to more sickness and death. The president also considering disbanding his Coronavirus Task force, the experts that have steer the governments policy thus far. China is firing back at u. S. Secretary of state mike pompeo. They say he has no evidence for his claim that the coronavirus escape from a lab in the city of wuhan, china. The Foreign Ministry called the attacks part of an election your strategy. A spokeswoman pointed out that the World Health Organization says the virus could not be manmade. A warning today from the European Unions executive arm. The European Commission says the eu is facing the deepest economic downturn in its history that threatens the future of the Euro Currency if its badly handled. The euro region economy is set to shrink 7. 7 this year because of the coronavirus outbreak. Day, onews, 24 hours a air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in countries. I am mark crumpton. This is bloomberg. Vonnie thank you. Now to a bloomberg exclusive, a crucial issue during this coronavirus pandemic is the ability to keep essential goods moving around the world. Can Container Shipping Company survived this sharp downturn in global trade . Hapag us as the ceo of lloyd which is germanys biggest shipping company. Thank you for joining us. Give us an illustration of how your business has changed in the last several weeks. Things have changed since the thing started in asia. Initially, we were impacted by reduced volumes of china because it hit there. That came back pretty fast and now we see since end of march and april, the impact in other parts of the world, mainly in europe and now increasingly in other places like india. Its affecting global flows and the indications you get from some of the global institutes like clarkson. In,. 10 on annualized caroline vonnie vonnie we are hearing a lot about countries and companies turning inward celeste globalization more of the need to source things internally during this time. Have you had to change routes because of that . Seen, we have generally volumes come down especially into the Second Quarter one would also expect that on the back of this pandemic. You dont see a lot of change in sourcing patterns just yet but some of it might come if you look a couple of years ahead. On the screen right now, weve got your share price. Its up over the last year 504 . You just told me you are facing difficult times when it comes to seaborne container traffic. Why is your share price up as much as it is . Can you give us some degree of explanation . I dont think so. Its not up to us to comment on that and to be honest, we are trying to understand that and there is no obvious reason for it. Are you incentivized in any way . Is anybody incentivized in any way of the share price continues to climb . Youve got four major shareholders and im wondering if any of them are potentially involved in this. Is there any kind of internal benefit other than youve got some shares but is there any kind of internal benefit for the share price doing what its doing . Is there any benefit your major shareholders because of what is happening . Not really. Explain the costcutting , you are being proactive about raining and cost even though you say things are moving in asia and will likely improve in the u. S. And asia. What will you have to do . Will you have to lay off staff . Will you have to decommission container ships . Is whenwe are doing Something Like this happens, you need to control costs and manage cash and thats why we are looking at every single category to see where we can save money. Then that amounts to a big sum of money in terms of people. We are being cautious now backfilling open positions but right now, we have no plans to do any significant layoffs. Vonnie talk about liquidity because you got an outlook change at moodys from negative to stable. Are you concerned about your ability to Access Capital markets . How much do you need to Access Capital markets . We are not concerned about that. We have taken some precautionary measures like everyone has done but right now, we dont think we will need that. You see consolidation in sector and you indicated in an interview a few days back, talking about consolidation and whether we will see other competitors of euros going out of business. Rollup an opportunity to on the businesses or do you think in the post covid19 world that the container demand and . Olume will be lower as these businesses go out of business, that will help balance the market . Its difficult to say. Andre just into this crisis a couple of days back, i said i dont see anyone falling over anytime soon. If this crisis lasts longer, than everybody thinks, that might change. Thats not in the cards right now. Vonnie let me ask you about oil prices. How much are they helping and whether you are tempted to have moved to have some of your ships become containers for wti . To answer your first question, the fluctuations in oil affects our business. In the beginning of the first order, first quarter, well prices went up rapidly in a take some time to pass that on. Now we see the opposite effect as oil prices have plummeted so that means we get a tailwind effect before its reflected in the prices but its a global fluctuation we will always have in this case. Guy we really appreciate your aboutnd being upfront whats happening with the share price, thats a real head scratcher. Thank you very much indeed for spending so much time with us. Lloyd. O of hapag just ahead, we will talk to the u. K. Trade commissioner for north america. We will talk about the relationship between the u. K. States. United apparently there is a trade deal in the offing, what will we see . This is bloomberg. Vonnie live from new york, im vonnie quinn along with guy johnson in london. This is the european close on bloomberg markets. Shares of General Motors are up more than 5 with gm reporting betterthanexpected quarterly earnings. Sales of new pickup models were soaring. Fulltime pickup deliveries rose 27 in q1 which helps g. M. Pileup more than 30 billion in cash. Is reducing its workforce by 14 and says more cuts are likely. 37 hundred jobs will be eliminated in the first round of cuts. Most of them will be in support and training. Email torote in an staff that ridership is down more significantly than since the start of the pandemic. Wendys is having temporary problems in getting beef from suppliers. They are shifting its marketing to focus on chicken. Wendys reported samestore sales picked up last week after plunging the first part of april. That is your latest Bloomberg Business flash. Its the end of the day in europe with european markets got a diversions. The ftse 100 is outperforming the continental market and we are rolling back over toward session lows now. The Health Care Sector and utilities doing much better today. Oil and gasoline losing in the dax down by 1. 2 and the similar story on the cac. More details to follow with european close coming out. This is bloomberg. 30 seconds to go until the end of regular trading in europe. Thingsake a look at what look like. More of a defensive nature to the market today, i would argue. Downbeat. Et classes some of the stock stories in the United States, looking relatively positive. We have the bank reports today. Offou can see, we are just session lows on the stoxx 600. The ftse 100 in london is outperforming today, despite the oil and gas sector being the worst performing sector in europe today. Market. Defensive the ftse 100 is in positive territory. The dax and cap carron and c ac 40 are down. Story we areive watching carefully. The predictions coming out of the European Commission continue to be very grim. We may be starting to get some good news when it comes to reopening. Germany coming through with details about how its going to be reopening its a company its economy. The u. K. Expected to do similarly on sunday. Health care doing better today. The staples are doing a lot better. The defensive bias, certainly working today. Oil and gas trading lower. Some individual names to focus on. Certainly here in europe that we are watching quite carefully. In terms of the breakdown, telefonica. Were waiting for that story we broke here at bloomberg sunday telefonica. Semi coming out with a cracking set of numbers. Bmw trading lower, joining its peers. Softer today, down by 4. 71 . Vonnie in the first 45 minutes of trading, we were higher in the u. S. Now we are flattish on the session. It feels like a traders type of session. Disney up. The doubt just a little lower dow just a little lower. The dollar index stronger today. The yuan, not really going anywhere. It did weaken a little bit the last couple of days. In treasuries is where we saw most of the Market Action today. A mammoth quarterly refunding announcement. We got a new 20year issuance of 20 billion. Dealers wereary expecting Something Like 13 billion. It will have to be financed somehow. Lets take a look inside the s p 500 at some of the stocks on the move. Disney and the General Motors, up 4. 8 . Activision blizzard up. Earlier that consumers will continue to play after this lockdown period expires or eases up. That should be helping the gamers. Nevertheless, some of the majors are lower, because of low prices. Guy . Guy absolutely. Vonnie, lets turn our attention to trade. The u. K. And the United States have committed to an accelerated program for postbrexit trade. They held a