The u. S. Recovery could drag on through 2021 as long as theres no second outbreak. There might take a vaccine for people to regain confidence. Speaking of that, as present a aims to get 3 million vaccine doses ready for the u. K. By september. But Boris Johnson warns that u. K. May not be free of the virus for some time to come. And the Trump Administration steps up its campaign to blame china for the coronavirus, with an aide suggesting beijing sent Airline Passengers around the world to spread the infection. Were just under an hour away from the start of cash equity trading in europe. Lets take a look at futures this morning. We had a bit of a mixed picture. And now you see big, strong gains in european futures, 1. 5 on dax futures, 1. 33 on ftse futures. If you look at u. S. Futures, you also see 1 gains, about, a little bit less for s p 500 and nasdaq futures, but just barely. And more than 1 on Dow Jones Industrial average futures. What you see on the gmm . Gmm. Well, difficult for i want to get to redlines, four here numbers were posted. We are getting embers from the vision fund. They invest in technology and other businesses, public. The fullyears vision fund lost is ¥1. 9 trillion, versus y1. 26 trillion. Just getting an update, right headline across the bloomberg terminal on Softbank Vision Fund and just how much money it has lost in the fullyear. They are also giving a few more details on how the business is performing. You asked about the gmm. Lets look at that. We mentioned the risk on trades were seeing, but msci asia not up by much. But it falls as equity markets have been open. There does seem to be reason to be cheerful, 75 of the california economy open and the like. We see those positive messages, investors aware of the sectors. Keep an eye on commodities, oil back above 30 a barrel on the brain and imax contract. Gold at a sevenyear high. Not everything is risk on. Keeping on the pound after the comments over the weekend about the bank of england examining various policies, unconventional policies, including negative Interest Rates. Thats a quick look at what is going on in these markets. . Matt matt . Matt lets get the plumber first word news. The u. S. Economic recovery could drag on until the end of next year, according to fed chairman Jerome Powell. He made the comments in an interview with cbs, saying the recovery hinged on the arrival of a vaccine. He added the central bank has not exhausted its options for supporting economic growth. Today marks the first meeting of the World Health Organizations governing body since the start of the coronavirus pandemic, and china is set to be challenged on its handling of the outbreak. Europe and australia are likely to push for a probe on the origins of the virus, on top of criticism from the u. S. , the white house repeatedly blaming beijing for the pandemic. Astrazeneca is aiming to make 30 million doses of a coronavirus september, and has committed to delivering 100 million doses this year. U. K. Will be the first country to get access to the medicine, if its successful. The vaccine is being developed at Oxford University and the business secretary says its getting over 65 Million Pounds for funding. Global news, 24 hours a day on air and on quicktake by bloomberg, powered by more than 2,700 journalists and analysts in more than 120 countries. Anna . Anna futures are advancing this morning, along with modest gains in asia equities as investors look at some encouragement or look for some encouragement from signs of businesses reopening, crude oil and Commodity Currencies also advising. Joining us is bloombergs mliv currency and rate strategist could to speak to you. Has significant strategist. Good to speak to you. How significant are the comments the u. S. Economy will recover . He gave an indication of where unemployment might top out in the u. S. Is this giving comfort to markets . U. S. Futures pointing higher. Guest good morning. I definitely think its comforting to the markets, for sure, because as we said, he expects strong in the second half. His reassurance matters because many of the markets were fearing we could be in for an lshaped recovery and even fearing a 1929 style depression. So the statement is good for sentiment and for investor confidence, coming as it does from the worlds most preeminent central bank. Anna . Matt you know what, anna mentioned that gold was powering higher again today. 5 . Act, all metals up whats going on there . Ven well, you got to look at in potentialt and the for negative rates in the u. K. If you look at it in that context, gold has the chance to go even higher. Rates are bound to be lower for a long while. Gold is not an interestbearing asset, but there are no negative rates associated with it. And that is a good incentive for speculators to drive up this bright the price of gold. Matt . Anna let me pick up on the question of the day you and the team have been throwing around, which is does Value Investing still matter . We seem to perpetually revisit this theme, but it has been Growth Stocks leading the way in u. S. Equities. What is the story around value at this point . Underell, valley may performed for a period of time underperform for a period of time. There is no investing style invoke permanently en vogue permanently. A tender margin of safety that comes with it, i dont think thats going to go away anytime soon. If you look at have Warren Buffett and benjamin gramm approach it, they all believe in the secret cigarette but style of investing, that you go and buy. The market will support you eventually, if not immediately. Maybe not immediately, but definitely at some point in time, value will converge and will produce, will deliver the results. Anna . Matt thanks very much. Amazing chart here. Growth stocks overvalued stocks, starting even before the financial crisis. But just powering up in the recovery from the pandemic there, the pandemic drop in equities at the end of the chart. Our currency us, and rate strategist on the phone. Coming up, dragging on. Powell says a full recovery of the u. S. Economy could stretch to the end of 2021. Well continue to discuss the comments of, as ven says, the preeminent central banker in the world. More on that next. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open on a monday, kicking off the weekend with us. Lets get the Bloomberg Business flash with you. Here are the top corporate stories from the bloomberg terminal. Emirates is considering slashing about 30,000 jobs. That would see the worlds biggest longhaul carrier shrink its payroll by as much as 30 . This comes as the travel industry is in near hibernation due to the coronavirus pandemic. Their lines are looking to reduce costs and realign their operations to cope with the downturn in demand. Something is doubling the amount of shares it plans to buy back. The company will repurchase as much as 4. 7 billion worth. Its also announced changes to its board, including the resignation of its director and alibaba founder jack ma. Dow jones is reporting it plans to sell a significant portion of backtate in tmobile u. S. To deutsche telekom. Berkshire hathaway sold off most of its state in goldman sachs. Its a long time holding that slant nearly 33 in the first quarter. Warren buffetts company also cut investment in jp morgan by 3 . Berkshire did end up boosting ank, with anne b increased stake in pmc. And that is your Bloomberg Business flash. Anna . Anna lets get to the around Jerome Powell and the fed. The fed chair has warned the recovery from the coronavirus pandemic could take longer than expected and depend on the delivery of a vaccine. It may take a while. It may take capable of time. It could take a period of time. We dont know. That was short and sweet, wasnt it . Were joined by rebecca. Very good monday morning to you. We look at this comment from jay powell, seem to have comforted markets, futures point higher in the u. S. Do you think the april rally went too far . Where are we now in terms of risk on, risk off radar . Rebecca good morning. Yes, certainly i think the Market Recovery was overdone. Its a classic case of a bear market rally. We saw the crisis go up. We didnt see volumes and we didnt see investors following through. I think that left it in a difficult position. What we saw last week was a growing realization that the vshaped recovery, to use someone elses words, but i very much see that power. And i think its going to be much more difficult. What we were seeing last week is Corporate News and economic news, suggesting the recovery will be delayed. I think now we enter this week at a very interesting time, when we clearly have two sides of the argument. He still have some people believing that 2021 will be ok. If you look at earnings, some believe in a quick bounceback there. And then you have a lot of other people, including powell, who say its going to be much more difficult. That will be the line i would take. And the fact that from here, to see another big leg up, youre going to need a health solution. Youres it not so, going to need a health solution. You dont think a stimulus solution will suffice . You could look at powells remarks as an attempt to focus the mind of congress and get another fiscal stimulus package out there. Rebecca i think, and clearly no one is going to say no thank you to more stimulus, but stimulus can only go so far. The stimulus we saw in march, it meant that we reached a bottom in the market. Were not going to receive that bottom. Were not going to have a liquidity crisis. Good news from here could save the economy, but wont necessarily lead to demand and earnings growth. You only need to look at what is happening in china, friday you butindustrial figures rise, retail figures felt low and are still falling. The stimulus isnt necessarily owing to feed fruit to corporate profits. Was looking ati the move from friday, and they kept the rating in france unchanged, but changed the outlook negative. How much do you think markets have been vulnerable to this ratings movement, or at least ratings movement when they come . Is the european invest ins investment story depended, or can we look through that . Rebecca i think investors are expecting difficult ratings. I think its almost in peoples mindset. If you see the pure amount of underperformance, youre effective. Some of that is baked in. Were already tuned into the european economy being hurt or hit and will take longer harder hit and will take longer to recover. Matt you think europe is going to take longer to recover is it possibly because we have the lack of, for the cohesive federal government response that the u. S. Can count on . Rebecca i think its more just because of the makeup of the economies. You can break it down into stimulus and return to work and reopening of economies, the actually one thing thats really worked in the u. S. Favor the last couple of weeks has been the size of the tech sector, the size of the health care sector, whereas in europe, our largest sector is financials. If one place up against the other, most want to be with the cashrich businesses. Thats one thing that will continue to raid the stock market, not necessarily the economy going forward. Anna how damaging do you think the rate of an employment in the u. S. Is going to be further u. S. Recovery story . I was looking at research by bloomberg, 1 5 of american workers, 6. 5 million, have filed for on up limit since midmarch. Barely millions of those are still waiting months later to get hold of the money that they are due. This is going to take its toll on the u. S. Economy, isnt it . Rebecca definitely. Even though ive said the u. S. Is better placed than europe, im not saying the u. S. Is in a good place either. I think weve been underestimating economic impact. And more than that, weve been seriously underestimating corporate earnings. What youre talking about is disruption for months and months to come. We may have seen a hit to the 2020 forecast, but that forecast is not reflecting topdown and we are not seeing adjustments to the 2021 forecasts yet. Matt rebecca, were going to keep you with us. We have more to ask. Rebecca stays with us. Coming up, crude rise. Oil is above 30 a barrel for the first time in months. Well discuss the oil market. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. We are just under 40 minutes to the start of cash trade. We have futures rising to kickoff the week. Oil has risen above 30 a barrel for the first time in two months. Thats as producers in the u. S. And elsewhere continue to cut activity, helping to rebalance a market thrown into disarray by a coronavirus by the coronavirus lockdowns, globally. Rebecca is still with us. Rebecca, you have a relatively bearish view on the markets on economies. I wonder, how do you see this polish oil story, especially bullish will story, especially considering it doesnt seem a lot of people are going to be back on the air or in the roads anytime soon. Had a tighteras rally several times, and its very difficult. One just looks very simply at the demand versus supply equation and thats all you need to tell. I think the difference now is you clearly have seen production cuts. Youve seen them come through from opecplus, from the u. S. To level up the equation so maybe oil doesnt go down to lowes again, but its a different lows again, but its a different thing to say people should reenter shares in a big way. Let me ask what implications the recently weak oil price, still relatively weak , what implications does that have for inflation . Inflation is dead for the for siebel future. We notice foreseeable future. We notice that hedge funds lining up behind gold again. Some talk about an inflation link there. What is your expectation expectation . Rebecca as others have said, it killed the inflation story. And with that deflation, its another thing which will carry on hitting growth forecast for the rest of the year. Peoplestories about looking to hedge inflation bets, but it seems a long way out. Changes going to have to to see any kind of demand for inflation going on. Matt what do you think investors should do, especially if investors sold after the rally . We saw last month, beginning of this month, and now need to put their cash summer. Do etfs look like the right play because of Central Bank Nine buying . Rebecca certainly etfs have had a good crisis. They have net inflows here today despite the future disruption weve seen. And youre right. Highyielding of etfs has led to a lot of public city. Weve seen publicity. Weve seen a lot of investors ask, a lot of interest in that. An etfs make a very transparent, very easy to transact vehicle. And some have meant to have done that. They are priced continuously, you can trade continuously, and they really work for people. Within the area, there are many different ways to play this market. And in terms of the suggestion from us at the moment, looking at one of my specialist areas, sectors, our continue discussions continue to be defensive, continue to be in those areas less skate by this crisis scathed by this crisis. Anna what about the esg gts . Many investors do relate what were seeing now to climate change. For others, the focus is on the virus. What is your perspective . Rebecca there were many doomsayers who said it wouldnt survive the crisis and investors with think right, im not going to bother looking at that. Im not going to pay any type of premium for est. The esg has proven extremely relevant. Where we may look back and say we were very slow, as nations, as governments to react to the threat of the virus, youve now been able to unleash investors are able to say look, lets not make the same mistake. Weve had many warnings, but lets stick with this. The collapse in the oil price this year has meant many fossil fuel reserves just arent workable anymore. In the meantime, youve got Renewable Energy sources ready to take over orders. Plus, the fact you move away from the environment, huge safety problem were discussing, workers rights, Workers Health and safety. Matt rebecca, thank you so much for joining us. Matt welcome back to bloomberg markets. This is the european open, 30 minutes to the start of cash equity trading. You can see we have futures pointing higher, dax futures now up more than 2 . Lets look ahead to some of the key events. Tomorrow, fed chair Jerome Powell and treasury secretary Steven Mnuchin will testify before the Senate Banking committee. And staying in the u. S. Wednesday, were going to get the feds april meeting. Thursday, its the turn of the ecb. The vanke publishes its Monetary Policy meeting. In japan, shinzo abe is expected to make a decision on whether to end the state of virus emergency in areas, including tokyo and osaka. On friday, the National Peoples congress, the annual gathering of chinas main legislature, gets underway following coronavirus induced delays. Anna . Matt, lets talk about the avian aviation sector. The Coronavirus Crisis will reduce pathogens by have over the next year. Carrier isggest taxing corporate financing acility as it digs in for slow recovery that is set to see a price war across a much omitted air travel market. I am pleased to say we are joined by the ceo of ryanair. Great to speak to you this morning. Of a loane difference scheme and asking for a bailout . Youve been critical of any airlines who have asked for money from the government. No, we havent. Weve been supportive. Were supportive of the state aid made transparent to all competitors equally. As the payroll support schemes, such as the u. K. Loans schemes. We qualify because were the largest passenger in the u. K. Were what were opposed to is on top of billion,. Relieves 12 italia that has been bankrupt for a number of years. Now receive 3 billion. Without any corresponding support to the other air in that market. The french are refunding french taxes to air france, but not to ryanair, who also operate in france. Is anere callinga for end to those states, but are aids,vailable state but are made available to all. Anna you can critical for those kinds of schemes. Are you looking for some of the payroll support schemes in