central bank. ae press conference starts little while from today is bloomberg. ♪ ♪ francine: this is bloomberg "surveillance. -- shell had to cut dividends for the first time since the second world why -- world war. --omberg spoke exactly exclusively to the chief executive. >> it is of course a difficult day. on the other hand, it is also an inevitable moment. we are basically facing two problems, one is the poor macro economic environment which is getting worse, but the other problem which is probably bigger is that we basically have a crisis of uncertainty, uncertainty about demand, about prices, maybe even uncertainty about the viability of some of our assets given the logistical issues we have. we have taken some strong and early countermeasures to protect the financial resilience of our company, and you have seen before we have taken a reduction in capital costs and operating costs, $89 billion over 12 months, but frankly speaking, these countermeasures are not enough to deal with the impr

central bank in the european central bank's. it's could be a radically different press conference from lagarde today than what we saw from powell. francine: many people say it's a different economy and cycle. i'm excited to be talking about that. first let's get straight to new york city. trumpbegin with president blaming china's coronavirus response on politics. he says beijing would do anything to see him lose the election. the president did not provide any evidence china would liberally mishandle the outbreak. he says he is considering various ways to punish the chinese government. china's response, it has no interest in interfering in u.s. internal affairs. chairmanderal reserve jerome powell, he worries about the long-term economic damage of the coronavirus. if the economy starts to recover in the third quarter, it's far from over. to the european central bank it will decide today if $1.1 trillion stimulus is enough. it will include asset purchases, ecb president christine lagarde is said to reiterate her pledge to do every

i think that european commission, european central bank and european council took decisions in four weeks that probably in the past we spent four years to wait on. so what we are having now is a more common and co—ordinated response that is helpful, because we think that no country can manage alone, because we have not the financial crisis on the stock exchange. what we have now is a crisis of the genuine value of the real economy, in terms of distributing, in terms of exports, that is linking all the 27 countries. indeed, minister. i understand you're trying to put a positive spin on it, compared with some of your italian colleagues. but nonetheless, the reality is that your prime minister, mr conte, has insisted that in the end there must be debt sharing, through the form of some sort of so—called corona bonds. that is that the entire eu, including the richest countries, like germany, should take on, assume, some of the debt burden that now sits on countries like italy. the germans have repeatedly said no, and they didn't say yes even in the summit yesterday. so why are you being so

and the responsible in this environment to defy the european central bank or the bank of england or the other regulators and go ahead being born and she's and the evidence should be all together in this and we should all share the pain otherwise companies will become morally bankrupt as well as financially i mean us this time around the governments are trying to help businesses directly aren't they i mean should governments take stakes in these businesses and make sure they don't pass on the money to shareholders thereby enriching them. no but they can put strings attached to the cash that they are pushing the businesses they can ask the business not to eliminate capacity for the post-crisis period for a period say of 6 months or 12 once you get the same amount of employees the same output and so on so it's very important that the money that goes into the private sector is safe because jobs and safeguards individual incomes as well as the viability of the corporation just a final point to you emily us this is all very well for rich countries but what about low and middle income nations

i think that the european commission, european central bank and european council took this decision in four weeks that probably in the past we spent four years to wait on. so what we're having now is a more co—ordinated response, that is helpful. because we think that no country can manage alone, because we have not the financial price on the stock exchange. what —— financial crisis. what we have now is a financial crisis of the real economy in terms of distributing, in terms of exports, that is linking all the 27 countries. md, minister. i understand you are trying to put a positive spin on it, compared with some of your italian colleagues. but nonetheless, the reality is that your prime minister, mr giuseppe co nte, your prime minister, mr giuseppe conte, has insisted that in the end there must be debt sharing, through there must be debt sharing, through the form of some sort of so—called corona bonds. that is that the entire eu, including the richest countries, like germany, should take on and assume some of the debt burden that now sit on countries like italy. the germans h

central bank, by the european central bank, by the european investment bank. the commissionjust european investment bank. the commission just announced a 100 billion package for workers who have lost theirjobs. i don't think there will be much of a difference to what we have seen in the euro zone crisis. if i could just add in, we have seen in the euro zone crisis. ifi couldjust add in, one of the interesting things about this crisis is that it has shown that many of the better in politicians around europe, and indeed, around the world, have been overtaking idea logically. in the netherlands, for example, which has had the loudest voice in countering this idea of corona. . . voice in countering this idea of corona... the prime ministerand '5 coalition is under pressure, two of the parties have joined him in forming the government, are more inclined to show fraternity and solidarity with italy, spain and france. i think there will be a lot of pressure, and i would be interested to see what kind of pressure at the current ruling coalition in germany might come u

but it is about a cent of what the european central bank has said we needed in terms of fiscal stimulus across the u. that's why i said of the game when my need a little bit more to an end we haven't finished i think and there we don't have any serious shan't risk taking into floor corunna balls of europe on so many countries from debt so yes it is quite limited and presents and one of the countries are going to end up having bar exam a lot more and the worry is what's going to happen when we come out of a disunion we're doing a reasonable way in terms of needing to retrench again so we had this terrible fear that was sanity over the last in the is and i'm going to see it again who suck that is the next question who how are we going to pay for this who is going to pay for this for the layman these eye watering amounts of money have to come from somewhere who's coughing up well indeed. so far we are seeing a repeat of the disco resource during the euro crisis which basically mean that everybody pay for themselves as there are no joint corona bones there are no mutualization that dept. in

a lot of earnings and we have the european central bank and what christine lagarde has to say if she is going to have extra measures given what they've done already, a look at what they say and what stimulus will mea

don't want to pay anybody for it i want you to give me the money european central bank i want to look at as you get from you and all the people you represent in the e.c.b. and they say because yes sir here it is we're going to wire the money right away and they give to this guy at louisville well no then to say they gifted him to fany as a gift or you know from the european sense that look it up you know this is that you think of some slob working at mcdonald's is going to be able to call up the u.c.b. and say oh.

central bank warned the eurozone economy could fall 'd by 15 percent china's has declined by a record 6.8 percent and japan's is also projected to contract further it already face its fastest contraction rate in 5 years at the end of 2019. all right let's introduce our panel in london greg swenson partner at investment banking firm brig mcadam in maryland robert scott senior economist at the economic policy institute and in washington d.c. jeff hauser executive director at the revolving door project at the center for economic and policy research welcome to you all jeff let me start with you many of the restrictions have been put in place in the u.s. . now you have this 4.8 percent contraction that's happened and the restrictions were put in place before this is only really hinting at how bad things will get. absolutely the 2nd quarter the economy the worst in american history the intentional debt reduction in economic activity is unprecedented it's necessary if anything it's actually insufficient in terms of how much america is complying with you not stay at orders but if that 2nd qua

central bank has stepped in quite significantly with an extra promise to notice security is worth about $750000000000.00 over the next year we'll begin to do of course is also by greek bonds for change so if you see it allows governments in italy greece etc to themselves go out and borrow more and have x. the come to market so that's good news but in terms of sharing the burden a little bit more equally what we've got from the european union in terms of the the latest package of 50400000000000 euros or thereabouts there's been a certain amount of direct supports to countries through the lending facility many of you see the yes and which is basically a facility that was created after the financial crisis this is a loan. which has no conditions even though some northern countries want to have those conditions but that's good news that's about 250000000000 what about 500 we have some help for the unemployed in the sense of and carriage the firms to keep their work is on their books 100000000000 in fact and we have. extra money coming to us via guarantees from the european investment bank a

pay anybody for i want you to give me the money european central bank i want it if you get for me you and all the people you represent in the e.c.b. and he goes yes sir but here it is we're going to wire the money right away and they give to this guy louisville it's all. say they gifted him to fany as a gift from europeans on this look it up you know this is that i think some slop working at mcdonald's is going to be able to call a p.c.b. and say. he didn't. know that's likely to work as a i have no idea why he did that in a british accent it was in fact a french guy pinocchio who receive that money are are no that was kind of the peak of that era so here we have this great depression looking numbers and the unemployment numbers and bank of america sees 15.6 percent unemployment so that that system is looking degraded and sick and in fact sick isn't the 1st words here of this tweet does this chart make anyone else sick fed balance sheet rockets up corporate earnings going straight down further evidence we don't live in a capitalistic society at last for decades of extreme leverage to

eu leaders discuss a massive coronavirus bailout, as the european central bank warns the bloc‘s gdp could fall by 15%. and the weekly ‘clap for carers' around the uk, as millions show their support and gratitude for britain's coronavirus first responders. welcome. we'll bring you updates on the coronavirus pandemic across the world but first we start in the uk where the first human trial of a coronavirus vaccine in europe has begun. however, experts are sceptical that anything will be widely available before the end of the year. nonetheless, the simple injection in a laboratory in oxford marks a significant moment in the scientific response to the covid—19 pandemic. our medical correspondent fergus walsh has this special report. what would normally take years has been done in three months by scientists at oxford university. around 80 groups worldwide are developing coronavirus vaccines. a few others in the us and china have also started human trials. there is no guarantee any of them will succeed. personally, i'm very optimistic it's going to work. formally we are testing it in a effi

central bank could simply buy in other was the naturalization and the joint bonds more of a political symbol which could be very important for calming down the markets but in other words it doesn't actually add anything in terms of. what we can do in terms of fiscal terms and one thing that is also very clear which is that if you look at the north which is basically netherlands and germany at this stage. represented by the same people who negotiated the during the euro crisis we are looking at the prime minister margaret of netherlands we are looking at an get a medical and she is probably going to be still be here by the time i'm dead but i guess on the southern side we have people like mike jones saying and in some senses in spain and also comes in italy they're all newcomers and another factor i don't think we should forget about is the fact that. president obama is no longer which means that united states played a pivotal role in forging a compromise amongst the countries and that mechanism that talent is no longer. greg we know about the grumbling from northern european countries

and the ecb with this talk about the european central bank possibly creating a bad bank. coming up, we will have plenty more. "surveillance" continues. i will be joined by tom keene and we will be looking at the top stories. also a conversation with larry kudlow, 3 p.m. london time, about americans getting back to work and the intercontinental chief executive. this is bloomberg. ♪ francine: wti opens the week by sinking to its lowest level since 1999 as the demand picture remains pretty grim. some signs of hope -- new york sees a drop in daily debts as --. leaders say additional germany reopens its economy on a limited basis. good morning, good afternoon, good evening, everyone. as always, it is time inventing from london and new york. we have a pretty interesting week ahead of us. i'm looking forward to the conversation with larry kudlow later on and how he wants americans to go back to work. and we look at germany and seeing some of the efforts in the day. i have to say there are two stories i am watching out for -- one's oil and the story that the ecb could be lookin

and at this point what the italians rely on is the european central bank. a lot of europeans i spoke to said perhaps the recent move i -- we saw today approaching 2% has to do with technicalities with what the european central bank is buying and they will fix that to avoid a fragmentation in the spread and this will correct itself. enough for ad country like italy to rely on central banks. there was a lot of hype to significant stimulus do european countries sharing the burden. this is not what we are seeing. that is what the markets start to worry about a few weeks of from now. how sustainable is this? what will the debt pile be over the long term. is that going to be enough? vonnie: thank you so much for reporting these days. that is maria tadeo from bloomberg news. let's check in on bloomberg first word news with ritika gupta. ritika: billionaire bill gates is criticizing president trump for cutting funding to the world health organization. gates call the president's move dangerous during oral health crisis. "pushedt trump the who china's misinformation

central bank says these emergency funds worth 540000000000 euros not enough you need a recovery fund to restart the european economy after the coronal crisis the e.c.b. talks about 1.5 trillion euros and you have to combine that also with the national measures germany alone is pledging one trillion yoan one trillion euro for its own economy so the numbers are really high and this is only the beginning of the discussions and the money has to flow ok we're going to see the bees go to tease perhaps in the future to me which joining us with a view from brussels on this massive bailout package for the e.u. thank you. let's get you the latest developments on the coronavirus john hopkins university as coronavirus tracking website shows more than 1600000 confirmed cases worldwide almost 96000 people are known to have died of covert 19 of the actual number is likely to be much higher yemen's internationally recognized government has confirmed its 1st case widespread poverty and 5 years of civil war make the country especially vulnerable to a severe outbreak and authorities in indonesia's capi

the answer would be the european central bank. this is the idea that is being floated. it is off a proposal by the french government which says we move away from corona bond and focus on the fund, and maybe that is way to bridge everyone. we just heard from angela merkel saying she does not see corona she will show solidarity. vonnie: there does not seem to be any moving on the part of the netherlands or germany on the corona bond. what about the bad bank idea? maria: this is a story that was reported which suggested the european central bank was slow to the idea that there could be one -- companies and lenders in europe could see companies often -- but also clients not being able to service some of their payments. that was -- that has removed some of the pressure. what we are seeing is the european commission is saying they never looked into this. that report has been shut down. there is an idea that gets momentum butloses ultimately there is something in the works. having said that at this point, no one is putting this as happening. we are seeing if there's any kind o

central bank. the bundesbank has been overruled on every big monetary policy decision pretty much. germany is not going to give up and so weereignty, just know that there is not going to be a situation where other countries can effectively borrow against germany's either directly or indirectly. the model has to be a combination of monetary policy cap in yields and effectively sovereign national decisions. in a sense, i don't understand tactically why people try to bring up this issue of the issuance of eurobonds, because it is just not going to happen. they would make more sense to me given the budget rules have been suspended, actually for come in inense, for this to be allegiance to countries. italy and spain saying let's test the bond market and make it the ecb's problem. i think the simplest solution in the eurozone would be for the central bank to cap spreads. wethe ecb came out and said are going to take a leaf out of the book of japan but target the spread and say the gap between the lowest

central bank is claiming that 1.5 trillion to the 3 times of that amount is really needed and not only italy but also spain and france demanding though the issuance of common that of corona bonds to finance all of this to have a limitless amount of money available. why are these countries germany the netherlands for example so opposed to these neutralized debt solutions like corona bonds for example because i mean this is a fault line which is not new. yes germany and the other more richer countries all used to be richer countries are against it because they don't know actually how they will get out of this crisis villa germany have the potential the money to guarantee all those credits with that are needed in future the german finance minister shows doesn't know it he said recently in berlin it's really a lot of money and he doesn't know so he does not want to do this commitment right now for europe because he has to save germany 1st but some are are looking at this moment really as a test of the european union how much of a threat could this be this this failure to address the financ

in central bank a promise in the sort 'd of scale of economic bazookas which will meet police scale of this crisis yes so up till now. the crisis affected the different countries in the e.u. and print way and it hit us abruptly so the individual countries had no option but basically to implement their individual incentives when you take stock of these incentives they are more or less coherent so they target funds to civil protection to health care and to address liquidity issues in the meantime in the european central bank was asking for the commend ations from the individual countries to offer a holistic plan and 500000000000 package was launched last fish could have there been more incentives and when looking at countries like italy i think their protests have been more incentives with regards to solidarity good to have done more maybe yes however there when you consider the fact that the e.u. is made up of different countries with different economic visions in the way different characteristics same sex at all i think that it takes longer to come with a holistic plan to identify a ho

but still this might not be enough because the european central bank says 1.5 trillion 3 times of that might be needed to get out of the crisis and so it's very difficult to find a compromise a netherlands a blocking everything right now because they want and you conditions on your credit lines on the other hand many countries that say we have to develop a recovery plan now and for that recovery plan you need common debt corona bones or euro bonds issued by all countries but this is very difficult germany the netherlands and others say no we will not do that because we cannot calculate the risk is that the only reason for the german opposition to call on a bonds. there's also the fia that germany after this tries is might not be as potent and as wealthy as now so ken germany actually governed t. all these credit lines and stand in for all that debt that might come in the future we just don't know and so enough shows the german minister is very careful in this respect but on the other hand spain and italy say we need you now if you don't have those now what is the e.u. then good for is

central bank. italy really today saying they disagree. but when you look at the market action, they are not liking what they are seeing. everyone who remembers the 2008 financial crisis, at that time moody's and s&p were criticized for not being realistic enough in their views. the ratings that fitch put out were much closer to the disaster that we saw unfold. let's talk about the state of play when it comes to reopening economies around europe, maria. what do you see in terms of the multi-stage and multi-speed openings that we are all following? maria: yes, so yesterday we actually had a roadmap from the french government and the spanish government. overall, when you look at the bigger picture they are very similar. they say we have to do it very gradually and make sure that we keep the curve in check. if that does not happen, we will have to go back to curbing the movement of people. what is interesting is that in the spanish case, they said they would do it by region. they don't want to penalize

federal reserve and the european central bank are also scheduled to hold policy meetings this week. one focus will be on what their additional easing measures will look like. the coronavirus is inflicting severe economic pain in both the united states and europe where infections are more widespread than in japan. yanaka marie, nhk world. >>> officials in japan have called off an annual junior sports festival as the pandemic continues to disrupt fixtures nationwide. more than 30,000 high schoolers were expecting to take part. the all japan high school athletic federation made the decision at a board meeting on sunday. it is the first time since its 1963 inception that the summer festival has been canceled. competition was to be held across the country during august. the event covers dozens of sports including athletics, swimming, and ball games. the officials cited difficulties ensuring the safety of athletes and staff during competition, as well as risks associated with travel and lodging. they also noted that many of the athletes have not been able to train properly with the closur

central bank the european commission some of the responses in the at the european level are short to medium term like the one we saw last week in the euro group but some will require and this is where we are focused now having a plan to restart the economies of europe. but also in a very robust manner versus where we still need a bit more work in order to give us selves the means to exit the recession in which all our economies will be in 2020 as we have heard from the international monetary fund at the global level i think there is space to do more space to do this in a more coordinated manner one again one of the other lessons we draw from the 2008 crisis is that when you've got a global crisis and this is what we have today as a recession in 2024 the world irrespective of where you are irrespective of how big or small you are irrespective of whether you are in the north or in the south it requires think earnestly synchronizing their responses it requires investing in greater coordination i know it's not very fashionable to talk about these days where some seem to be pursuing more

being pushed off the table by the commission so a lot of measures the european central bank has ingested 750000000000 euros of on the line today set of a huge number 2770000000000 euros have been put in the table in order to face that crisis will still have to wait and see how much of that money will actually be needed for the moment the sign of the commission the sign that the commission wants to send out is that the e.u. and its member states take this serious and they do everything they can in monetary terms in order to support member states to prevent them from facing economic consequences harsh economic consequences from that crisis madness in brussels thank you. in south america brazil has the most cases of the coronavirus and the highest death toll almost $7000.00 people have been infected that includes the 1st corona virus case among its indigenous population the country's president has been under fire for his handling of the pandemic last month he referred to covert 19 as quote amazingly cold he's also the only major world leader continuing to criticize lock down measures design

we'll continue to monitor and get updates from you the european central bank tries to encourage banks to continue lending despite the deep european lending speaking with us earlier, the member praised the central bank's move so far to address the pandemic what we need is clearly a kind of european solidarity the ecb has acted quickly and forcefully in various steps that was needed given the nature of the crisis was a simultaneous supply shock. this time more of the responsibility would lie with the fiscal side. >> former ecb member on concerns around the way the crisis is being dealt with this tells us about where the markets would be where we are. that prints is better than the early call we got on the futures. the expectation was an hour or so ago that we would be down an hour or so ago this would be better perhaps the market reviewing the euro group meeting and contemplating why oil is doing better let's roll it over and show you what is going on in individual markets at this point. we do see bigger losses in france the ftse 100 down .09 here as to what the agreement means for cred

being pushed off the table by the commission so a lot of measures the european central bank has ingested 750000000000 euros of on the line today set. a huge number 2770000000000 euros have been put in the table in order to face that crisis will still have to wait and see how much of that money will actually be needed for the moment the sign of the commission the sign that the commission wants to send out is that the e.u. and its member states take this serious and they do everything they can in monetary terms in order to support member states to prevent them from facing economic consequences harsh economic consequences from that crisis. mathes in brussels thank you and here's a look at some more ways covered 19 is impacting the world there's growing concern at the scale of the coronavirus crisis in the u.s. president trump warning of vicious days ahead the death toll in new york state doubled in 72 hours to more than 1900 the president of the philippines has ordered police to shoot david anyone who causes trouble in lockdown areas or drink 8 to 10 days televised speech came just hours af

and eu leaders discuss a massive coronavirus bailout, as the european central bank warns economic growth could fall by 15%. hello and welcome to audiences in the uk and around the world. we're covering all the latest coronavirus developments here in britain and globally. first 7 the first human trial of a coronavirus vaccine in europe has begun here in the uk. with a simple injection in a laboratory in oxford this afternoon, a highly significant moment in the scientific response to the pandemic. we will talk more about that in a second. among the other main developments this evening: the uk government has reported another 616 more coronavirus deaths in hospital, bringing the total to 18,738 — that does not include deaths in care homes or in the community. matt hancock — the health secretary for england — pledged 18,000 people will be hired as contact tracers and will be ready to begin work in a matter of weeks in the us, the house of representatives is about to vote on another massive coronavirus bailout package, as new figures today show another 4.4 million americans lost their jo

central bank has now announced it will ramp up its stimulus measures a a business editor kate. he is standing by kate the slowdown was not unexpected and i'm not analysts say it could still get worse. absolululy because the lockdowns were only in effect for a few weeks of that first three momonth period of the yea- it meansns that the greatatest dadage is likely to come in the current second quarter. let's take a look at some of the figures the eurozone as a whole contracted three point 8% for the first quarter that's deeper than during the worst of the financial crisis a decade ago. a friend has plunged into recession after shrinking zero point 1% at the end of twenty nineteen-- it was downn five point 8% for this first quarter. italy's economymy has fallen four point 7% alsoo into recession spainin it down five point 2% germany y has public. data but it's for casting a negative groroh off aroround six point 3% for the year as a whole. the europopean centntral bank has warned that t the bloc. by anywhere betweenn five anand 12% and t twenty. that'll depend onon the conontainer