A system you can count on, we need transparency. President trump ramps up his Public Campaign to blame china saying he has seen evidence linking the outbreak to a lab in wuhan. I think the World Health Organization should be ashamed of themselves. The threat of tariffs weighs on the futures rbf and posted better than expected profits revenue surge and shares sink. Jeff bezos plans to spend 4 billion on virus response measures apple beats top and bottom line forecast in the First Quarter but ceo tim cook said he wont pretend to provide an outlook. Sending shares red after hours a very good morning to you and welcome to street signs. A rough start to may, the only stock markets that are open are trading lower after washington and beijing increased overnight. Threatened new trade tariffs against china after claiming the coronavirus outbreak originated from the country the president did not offer any evidence adding, quote, im not allowed to tell you that and also saying the worth Health Organization is covering up for china. Have you seen anything that shows you that wuhan lab was responsible for this virus yes, i have and the World Health Organization should be ashamed of themselves. The eus president said the origin of the virus is needed. Asking if she supports calls by a number of governments to probe the source of the outbreak also asking whether she thinks china should join the effort of course one of the Lessons Learned from this pandemic is that we need more robust data overall. We need more centralized than an entity to analyze so that the Early Warning mechanism is better at the level of the European Union, we know we need a more robust system for such situations as we see right now with the coronavirus for building up the system which you can count on, we need transparency we will have to work on that after the crisis that means you would like to see china Work Together with the commission and others to get to the bottom of exactly how this virus emerged . Yes this is all of us important. You never know where the next virus is starting. We all want that for the next time, we have learned our lesson and established a system of Early Warning that really functions and the whole world can contribute to that are you concerned that will lead to a weakening of relations with china and some cooling 0 of or distancing . No. I dont think so it is all in our own interest. This pandemic has caused so much damage it is in our own interest of every country that we are better prepared next time we do not know when such a crisis occurs again but we should be better prepared now. Jeff also spoke about the sharp downturn of the economy and about the post Pandemic Recovery we have to stand together to work on the economic recovery. The last time we have seen a drop in the gdp was in the Great Depression this shows how huge a task is ahead of us. Everybody indeed needs the next one or two years, the front loading of investment, maybe targeting the countries most hit by the virus and the following economic lockdown. The eu on monday will launch as much as 8 billion to fight the pandemic telling us why a Global Funding march than is needed the only way to beat this virus is with a vaccine. We need joined Global Action to have a coordinated approach to find a vaccine when we have it, to produce it and deploy it all over the world. There for, we have on monday the 4th of may, an online pledging conference we hope we are going to raise up to 8 billion. Geoff is now with us. You conducted this interview last night with the president of the euro area. It is all well and good to have this Recovery Plan but speed really matters here. What was your sense speaking and discussing this problem . Obviously they are going at the right speed but there is frustrations still about the pace at which they are still moving how quickly can they move through that eu leaders meeting where they talked about focusing on some sort of shared deb burden paper to the idea that there was a trillion euro idea fund but it was very slow i asked the president about how the lending terms would last and what would be the detail for companies or countries, she said it is too early for that kind of information at this point which suggests that it could be weeks and weeks before we really see something put together that can then start to provide Financial Assistance for companies in the process. Frustrating, i would say in terms of how it is going to be assessed by those who continue to wait and watch and ask, what does membership of this block or the eurozone actually mean in terms of shared pain when the going gets tough certainly with the speed the virus is evolving. We are already seeing the economy reopen and how we will shift and potential stimulus support. The other comments around the europeans supporting the investigation around the origin of the virus thatconversation has become really political what is your sense of going on a way without risking it and with regard to how the rest of the world views beijing . It would be great to have a nonjudgemental inquiry into the origin as we look at gilead and amgen and all these Companies Working hard to bring some kind of remedy to the table it would be useful for them to get a sense of where this started, what the chinese Scientific Data reveals and how quickly it then passed among the chinese population and what the a spread was. The w. H. O. Is probably the best organization to assist in that it has been politicized rightly or wrongly by President Trump. Well see what happens there and with china, theyve become brittle with anything that looks like criticism by a foreign country. The message from beijing has said we are not interested in participating in anything. I think it is bold that president von der leyen is adding voice to this im not sure well see any action soon from beijing markets under pressure this morning and we are seeing a selloff of that risk and perhaps the rest of the world to come back in. Thank you for being with us. You can get more of that interview and find out if she thinks eu cohesion is under threat lets check on how the european markets are for april. Rallying about 90 for the month. Taking a look at the ftse mib in italy. That index in april gained about 3. 75 , so lagging what weve seen in germany. The buying seems to have accelerated in the last week or month there. Gains for the month, difficult yesterday. Taking a look at the french index. The cac 40 rallied as well overall for the month of april, the stoxx 600 overall the best month since 2018 benchmarks have risen but not to the same degree we have seen on wall street. Uk Prime Minister says the country has passed the peak of coronavirus but will not ease restrictions too soon. He will unveil plans next week the first time we are past the peak of this disease we are past the peak and we are on the downward slope. We have so many reasons to be hopeful for the long term. The uk is leading efforts to find a vaccine germany will reopen playgrounds, museums and churches on monday but will not decide about schools and sports until next week as it eases out of lockdown. They say there was a risk of resurgence if people dropped their guard and forgot about social distancing. Translator i am firmly convinced the interest of the economy and social contact are best pursued if we look at the fact that we can take a step forward to allow more contact but we do not have to go back again and caution remains with the comparative hygiene rules. Some fresh estimates out of the Spanish Government now forecasting 2020 unemployment at 19 . 2021 at 20. 2 . So we should see some recovery between this year and next now seeing the 2020 deficit at 10. 34 by 2020 and the 2020 debt to gdp ratio, they see at 115 by 2020. So those are fresh numbers demonstrating the extent of the economic hit spain, one of the strictest in terms of the lockdown measures just beginning this week to ease those measures with children in spain able to return to the outside world for the first time in several weeks theyve had a massive reaction and we are seeing that translate into their unemployment deficit and debt forecast. Yesterday. The ecb was on focus they left rates on hold and said the Purchase Program could run to the end of the year stressing the governing council would stay in place during the picture. The hard numbers are just beginning to come. We just had a few numbers from the First Quarter. Our forecast for the Second Quarter points to minus 15 on a quarterly basis. As you saw, european equitys had a strong month lets look at bonds now. The 10year in the United States, the 10year treasury over the month, we saw the u. S. 10year jump early at the beginning of the month reaching north of 0. 05 now below 0. 065 a pit of a picture there with equities rallying. Being looing at the german 10year, the bund trend lower. Following a similar trend rising still firmly in negative territory, 0. 85 trying to keep a degree of pressure on fiscal policy measures and adjust the composition and looking at the italian 10year, very sensitive to what is going on at the ecb we have seen a spike about three quarters of the way through the month reaching north of 2. 2 we have see the yield tick up a little in recent trade the level now 1. 76 . We are going to squeeze in a quick break. Coming up, turbulence ahead for ryanair as they warn of job losses due to the coronavirus. More when we come back these days staying connected is more important than ever. 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Eye few of the stocks in focus here in the uk, ryanair has announced it will cut 3,000 jobs and reduce pay up to 20 it has reported a net loss of 100 Million Euros in q1 and further loss in q2 it will ground 99 of flights through july uks largest House Builder barratt will continue on with morning may 11 it furloughed most workers holding up better than the broader index as steve pointed out, the Construction Center has been getting going again in the uk theyve been able to continue work through the lockdown. Shares have held up okay over the course of the month. Well take a look at the Banking Sector which saw profits in the First Quarter to 519 Million Pounds the british lender will beat expectations and put aside 802 Million Pounds amid the economic down turn. This takes the total provisions to 6. 7 billion pounds. Sticking to the latest priorities ahead of the lockdown rbs shares are higher by 2. 8 . Lets bring in Laurie Mayers i want to start with the funding set aside. 6. 6 billion is the number set aside for the expected loan losses that are expected to come what do you make of that number . Do you expect to see these do more or is that sufficient our expectation is that they will need to set aside more. This is primarily because for the most part now, they are setting aside provisions for what they expect to happen they havent actually experienced that much deterioration, particularly relative to where they were lets say at the end of last year in their loan books so we think there is more to come q2 will be more useful and insightful than this First Quarter. Well have to wait to really evaluate those numbers it has been an interesting result season so far showing how different business mixes are fairing and seeing different reactions. What is important to the biggest mix toward the current crisis. Thats the term i used, mixed bag. I fully agree with you that the different mix in the loan book plus Capital Markets can make a big difference so far this year. In terms of the best book is probably a mortgage book from that point of view, wed say in terms of credit losses, we would say probably nation wietd, well be best positioned because thats what theyll be focused on but thats not necessarily so for the revenue side but in terms of credit losses and pure mortgage book, well experience a lower level of loss and clearly, we are seeing pressure on the margins given the drop in the interest rate. How low do you think the nims can go we do expect the pressure some of them have held up pretty well some seem to be in greater pressure before the coronavirus outbreak and reduction of base rates by the bank of england it depends on what the bank does we are not in negative territory in the uk at this point in time as compared to europe. But they may hold up from where they are for the time being. I think we are more worried about pressure on revenues additional provisions for credit losses at this point in time this is much more of an issue in countries where there is a link between how much does the Sovereign Rating matter given how much debt they will accumulate to support the economy . In all jurisdictions despite the strength or weakness of Sovereign Rating actually for the uk when we put the uk Banking System on negative outlook back in december last year, so well before all the crisis started. A big driver of that was the element of the Sovereign Rating of the uk which was put on negative many uk banks had negative outlooks partly driven by the fact that sovereign support element could go negative excuse, could go to the lower level even for the uk banks. The sovereign element is still very important in the Current Situation we are in. Through all of this and what the bank is playing directly and indirectly to the banks is really important in terms of mitigating to the extend that they can to some of the negative impacts that would otherwise occur as a result of the crisis and economic lockdown. Laurie, really appreciate your in sight. Coming up on the show, another rough week for jobless claims but the Labor Department believes the worst appears to have passed. Well take a look after the break. Welcome back to street signs. Im Julianna Tatelbaum these are your headlines European Commission president tells cnbc an investigation into the origin of the coronavirus is needed as she addresses the economic damage caused by the pandemic we are in a very deep crisis and it will take quite a while to recover from that President Trump ramps up his Public Campaign to blame china threatening beijing saying he has seen evidence linking the outbreak to a lab in wuhan i think the World Health Organization should be ashamed of themselves. The threat of tariffs weighs on u. S. Futures and pulls the ftse lower tech titans see red. Amazon shares sink as jeff bezos warns the retail giant could post a lost. Apple ceo tim cook said he wont pretend to provide a positive outlook amid the pandemic. Weve got some fresh data on the uk economy the april final manufacturing pmi come in at 32. 6, just a touch below the flash at 32. 9. Broadly within expectations. Now the lowest on record a couple of Interesting Data points the manufacturing pmi output sub index was sub for april. March coming in at 43. 9. In terms of new orders, that sub index also the lowest on record. So uk factories suffering the worst month in three decades that is the message from the data provider. The key here was priced into markets given that we had flash numbers, final numbers that we saw early on lets push on to early reaction. We saw that pressure this morning. Now looking at the stock ftse 100 down 1. 9 following a sharp drop yesterday that index dropped under 3. 5 within the benchmark. The stand outperformer better than had been expected sticking to their strategy that allison rose outlined before the pandemic sit they also set aside 800 Million Pounds for future losses looking at what that bond market looks like trading at 0 b. 32 you can look at the last month that guilt yield after dipping, thats the price rising over the course of the month. Taking a look at u. S. Futures. We are looking at more losses, the dow pointing to the drop at the open the s p 500 and the nasdaq also pressure following a weak day yesterday for wall street. Part of the reason sentiment has weakened over the last 24 hours is this renewed threat of trade tensions resurfacing President Trump has threatened new trade tariffs against china after claiming the coronavirus originated from a lab in the country. The president did not offer any evidence and was asked whether he would insist allowing investigators into the country we are going to say, so far, china seem to be trying to be some what transparent with us. Well find out youll be learning in the not too distance future. The federal social distancing guidelines were lifted a few hours ago. The death toll has risen above 62,000 now the federal guidelines are no longer applicable and it is up to the states how they want to proc