hsbc has delivered their numbers and cfo is with us, ewen stevenson of hsbc. you talk about a recovery in hong kong and china. 70%, 80% recovery in the economy, what can you tell me? is lending going up? how would you qualify the recovery in china and hong kong? you: it is early days, but can see people getting back to improving statistics in mainland china and to a lesser extent, hong kong. progressively coming out of lockdown and the real call will be the demand side, particularly what is likely to be a significant recessionary event in europe and the u.s. in the second quarter. hong kong and mainland china are seeing early signs of her every -- a recovery. nejra: the big transformation plan you announced in february, your ceo has said this morning the restructuring will resume once the virus passes, but can you give us any guidance on how you are expecting savings to come from other measures apart from job cuts which have been put on pause? ewen: we are doing all of the things we should do to control our cost base and we now expect the beginning of the year

this dispute you are seeing between retail investors and hsbc, do think hsbc's headquarters could ever -- do you think hsbc's headquarters could return to asia? simon: to return to asia, we understand they have a diverse point of view. hsbc, most of the revenue, especially in hong kong. i think many retail investors will also think they have to move back to hong kong especially when they're mostly coming from hong kong. for the institutional investors side, i understand it is quite difficult because it might -- [indiscernible] this point of view, gatheron the way to around 5%. movementhis is not a -- not a moment to talk about whether it has a good point to move back to hong kong. go,inda: before we let you if you are going along, would you be buying gold? qe we are seeing across the world. because at this moment, especially during a vast majority of the central banks are calling for programs. differentrrently, markets are having a -- [indiscernible] the qe on theng way. i think our long goal is one of in longer term investment terms of the over panic sentiment right now. yvonne: thank

that is how much hsbc says bad loan charges might rack up. that is by far the highest of the financial crisis. it is a little different from some of the u.k. banks in that it is very asia focused. for example, they had a really big loss this quarter because one of their clients in singapore, an oil trader, had a loan of $600 million that failed. but for hsbc, that also means it is going to benefit from the recovery in china and hong kong taking place sooner than the rest of the globe. one of the things they said on the call, which i think is absolutely telling of the times, is they are trying to calculate the losses they see from bad debt. they say it is part science, part art. thanks are in the dark terms of what their forecasts should be. not to mention, they are also getting significant government support, which also complicates the task of forecasting. a different beat completely was ubs. it gained as 5% in today's session so far. really confident it can dodge what is likely to be a waterfall of defaults in the market. they say they can a

still with us, stephen king of hsbc. let's talk about how the economy is being managed by government. one of the questions increasingly asked is, how do we restart economies around the world, how to sequence it? how do we bring different people back in the workforce at different times? how would you restart the european economy, the american economy, the global economy? stephen: that is a big question. i wish i knew the answer. to be fair, we have some information from china. china is in the process of restarting its economy. from covid-19 has totally collapsed over the last few weeks. is slowly reopening. it is worth stressing that it is not just a case of the government reopening things and assuming people get back to normal. we also know, for example, people have stayed away from cinemas as they reopened because they have recognized that even if they go back to normal, there is a risk of future lockdown and future infection. even where governments are back to business, it may be that the people, the public choose to b

what about hsbc? a bit more detail on what we have learned from the , because -- big bank, because there were questions on the dividend, particularly hong kong-based shareholders were that becomes an issue. their newthey gave targets at the beginning of the year, the full-year 2019 numbers and what they have done today is say it is too early to decide whether our 2020 targets are appropriate or need to be changed. in terms of when we revisit dividend repayment starting again, it won't be until the fourth quarter certainly. they don't have the visibility so the positives are they have plenty of capital. they have a nice capital buffer so they can afford to take these sensible provisions, but because they don't have the visibility and it is unfortunate for retail investors, but dividends in banks don't go well together. they haven't given any indication on when they can pay and restart payments until the end of the year and i suspect this is a write-off. anna: societies expecting a lot, governments are

hsbc saying its shares are trading in hong kong so far this year down 30% was up in london, hsbc shares have fallen by nearly 30% this year. governments around the world have temporarily closed to schools in response to the covid—19 pandemic. there are now 186 countries with nationwide closures — impacting over 90% of the world's student population. one industry that's benefiting is online tutoring and schooling. although schools have online lessons in place — online tutors and e—learning companies are filling some of the gaps. so is it a stopgap solution or a revolution? will it change education for good? joining me now is claudia swartzberg, chief executive of cambrilearn — a company that provides support for home schooling. welcome to the programme. give us welcome to the programme. give us your take on how we are all having to adapt to teaching our children at home. i have three boys aged nine, 13 and 14. it isa boys aged nine, 13 and 14. it is a huge challenge. yes, for various reasons. i is a huge challenge. yes, for various reasons. i think what people will realise over

are keeping an eye on hsbc, due out with earnings in 30 minutes. they have scrapped dividends, shocking investors. if hsbc is no longer a dividend play, it won't be so popular among retail investors. hsbc shares have lagged behind in five of the past six years. flip the page. take a look at where we are in terms of the indian market. we are waiting for the open. the news out there is revising down its economic growth forecast to-on-08% for the year, down from 5.% earlier. they opened higher by .9%. >> we have seen stocks on wall street going higher here on he hopes that lock-downs to eventually be relaxed in the u.s. and europe. what we have continued to see is a continuing rise in virus cases, weak economic data. judging that perhaps this recent rally could have gone too far too fast. let's bring in christopher bearings head of institute. christopher, always great to have you. thanks for staying with us. looking at equities right now, we have seen rebounds and almost the entering back into bull markets from the march lows we have seen. do you thin

according to our sources, firms like hsbc, ubs, j.p. morgan, goldman sachs have already been approved for majority stakes in local joint ventures. you have firms like credit suisse that are in the application process. our sources say that citigroup, which generates more than $1 billion of revenue from its china-based clients, is setting up a fully owned security business. there are plenty of challenges here in the market dominated by government control and long-standing client relationships. this is beneficial to china. they want to open the financial system to improve the competitiveness of the domestic industry will bringing in that for an inferred cease -- expertise and capital. there are concerns over financial stability. yvonne: we are still waiting for those new infection numbers coming out from china. yesterday, they started factoring in a systematic cases. we saw a jump of 1500 or more cases. is this a sign that china still doesn't have this outbreak under control? selina: the government is partly trying to fight a two front bat

you so much.nk it janet henry there, global economist at hsbc. coming up, we hear more from the credit suisse executive. this is bloomberg. ♪ >> i didn't expect that when i took the role on the 14th of february, but within less than a month, a lot of things have changed. significantssume a reduction in gdp in the second quarter of roughly 20% in the u.s. and in the high single digits in europe and switzerland. for the full year, we expect recessions not only in the u.s., but also in europe, and to a lesser extent, and switzerland. francine: that was our conversation with thomas oftstein, the new executive credit suisse after they set aside more than $1 million. billion.- $1 they try to figure out whether that changed anything. he said that didn't. that was the little but unlucky. we talked also about global market. what is very clear is that $1 billion is one of the first european banks to try to do what the u.s. banks to to try to take charge of provisions upfront. in: what a change, a change body language as well from the arch foreigner to th

targeting $35 a barrel for the year hsbc down about 60 basis points. more of a down beat set of results from ubs which is trading firmly up about 5% calling the credit quality of the ubs portfolio very, very high and strong. novartis up well holding about 50 basis points. cap gemini also high and san stand dar also up. this has been a key folkal point. ubs credited the jump to increase trading activity and more amid the loans amid the coronavirus outbreak ubsceo said the bank was better positioned in its exposure than its peers. >> we have always been focused on risk returns. the past years have been a little more painful than in lending growth that was very fast and created a different poe meant yum. in days like this, you can see how created exposure where we are busy managing but not unlike other players in europe. >> hsbc has reported a slide missing estimates. raising provisions to help soft enthe blow of the coronavirus outbreak raising credit impairment charges by $2.4 billion. a steep drive in prices and related exposure in singapore. cfo told

hsbc slipping after adjusted profit slumped. they also cautioned bad loan charges. santander air is fluctuating and novartis up after maintaining its profit forecast.

hsbc takes its biggest charge in nine years. ubs says its credit portfolio will shield it from loan losses. and oil plummets again. wti extends losses to more than 35% over two days. -- over two years. b.p.'s chief executive tells us we're beginning to see the impact of opec's cuts. well, good morning, good afternoon, good evening, everyone, this is "bloomberg surveillance." keene, we have three stores. one is banks, second we will talk about earnings, a lot of earnings from a lot of sectors, the banks not doing too badly in that. ad wti, 11% down after beholder of those futures spilled off yesterday, tom. tom: wti is leading down, no question, francine, but i would look at the remarkable decline of floating oil, global oil, brent crude, well under $20 a barrel now. for it to sustain under $20, a splint to me how some of these nations move forward. you were talking in the last hour with the tourist rector of greece. i don't know if oil is good or bad for the tourist director of greece, but $20 brent crude does not get it done fo

he joins us now from hsbc. good morning as well. i wanted to reaffirm the direction of the 10-year note. summersay over the hypothesizing how the 10 year yield under 1% and even driving it lower. interestsible that rates could drive ever lower? >> costing 50 basis points for the 10 year treasury, it took us a month or so to commit to this. we had to do some analysis. it obvious he gives us bound for a while, that's like a magnet across the curve down. iso more academically their our staff which could be 100 basis points lower than we previously thought. the fed was guiding to ask around 50 basis points in the medium to longer term. we might have to wait until june, but i would suggest the pandemic effect has taken are stocked on a long way. if that's the case, we need to on thetting our sites range further whole treasury. >> this is extremely important. talking about one full percentage point shift. steve major, there seems to be a persistency to that, how long do you perceive this or even outright good inflation we will see? what i

hsbc takes its biggest charge in nine years. ubs says its credit portfolio will shield it from loan losses. and oil plummets again. wti extends losses to more than 35% over two days. -- over two years. b.p.'s chief executive tells us we're beginning to see the impact of opec's cuts. well, good morning, good afternoon, good evening, everyone, this is "bloomberg surveillance." keene, we have three stores. one is banks, second we will talk about earnings, a lot of earnings from a lot of sectors, the banks not doing too badly in that. ad wti, 11% down after beholder of those futures spilled

it is a difficult operating condition for hsbc. they are still financially healthy because they saved quite a lot of money, which really caused the bank to lose a lot of support among hong kong shareholders. shery: exactly. that did not sit well with shareholders. when will they have to rethink that? there -- >> there are talks about maybe next year in february or march, they will declared the four-year package. forget about dividend. quickly, how much are we seeing on cost cut? are they doing it right? >> i could not hear. >> cost cuts. how are they doing? cutting costs, when it comes to cutting costs. thank you for joining us. we are facing a few technical goatees. -- difficulties. 1:15 a.m. -- amid bigs after that bank earnings. do not miss those interviews. we are looking ahead to trading in shanghai and hong kong. the market open. the china open is next. this is bloomberg. ♪ >> it is 9:00 a.m. in beijing. welcome to "bloomberg markets: china open," i'm tom mackenzie. >> and i'm david ingles. the trades.ing down our top stori

hsbc and standard charter slump in hong kong after scrapping dividends. the pmi data for asia shows contraction across the region. europe's biggest economies brace for manufacturing pmi today. to the markets, the reality of the global health crisis has yet to bring its full might to bear across the markets. marks, followed by jim rogers, all saying another rout is possible with a triple whammy of debt hitting the market. gundlach says will break the march lows and howard marks says the worst is yet to come. equities are lower as the reality of the global health --sis in america step set steps up. worst quarter ever. unlikely to counter attack, the implosion of demand, 95% of the world is socially distancing now. and to the dollar index, as the concern rises over the ratcheting higher a potential death in the united states of america, the reality comes to bear and the haven of choice rallies again this morning as we start the second quarter. a 2ld trump call for trillion dollar infrastructure spending bill to boost u.s. jobs . he said low rates would make

group higher by about ubs, hsbc, santander earnings out today. provision for loan losses is a big story, but ubs says it with ken -- says it can withstand a surge within bad loans. i want to go back to the s&p 500. take a look at why we may be taking a bit of a breather here. the index has rallied about 30% in just the past month. that is despite the fact that company after company is withdrawing its 2020 guidance, suspending buybacks and dividends. the fact that the economic outlook isn't looking great. and it from goldman sachs this morning says investors may continue to look through bad news as long as they think things are going to improve in the coming quarters, but maybe today, market participants aren't willing to bet on that recovery right now. i do want to look at a group of stocks seeing somewhat of a recovery today, and that is actually retail stores. locations across the country remain shut down, but you are seeing chicos up by 12%, bed, bath & beyond up by 7%, ross up 4%. it was upgraded at da davidson today, saying investors should

fxid bloom, global head of strategy at hsbc. he will continue the conversation with me on bloomberg radio so you can join us again at 9:00 a.m. u.k. time. tune in if you are in the city or on the internet. you can find us anywhere in the world. are scrapping payouts amid the coronavirus pandemic. and cutting bonuses may be on the to do list. we will talk about banker pay, next. this is bloomberg. ♪ matt: welcome back to bloomberg markets. this is the european open. 30 minutes into the trading day and we are looking at gains across the equities. european benchmark index. three and a0 is up third percent this morning. virtually all groups gaining this morning. if you were to look at the grr you would see green arrows as far as every single industry group. if you were to look at the mov screen, you would see 585 stocks up and only 13 down. a very broad up day. bloomberg news. top stories. oil is trading lower after a delay to the planned meeting of top producers. a virtual gathering of opec plus which was originally scheduled for

joining us now, steven major, hsbc global head of fixed-income research. do you see debt mutualization as a realistic prospect in europe? of it is think some happening under the table. i always thought it was borderline inevitable. we just have to understand how the various institutions work. it is only a baby step necessary for the markets buying into this a bit more. i am not saying we are going to have full-blown mutualization. that isn't how it works. you know very well because you've followed it yourself that the btp balance sheet, the better part of $6 trillion, is mainly a central liability. that means each country is in it for itself. the italian btp's, such as the bank of italy, our dinner five by the italian treasury. but what happens in the longer-term? what does the ecb reinvestment strategy look like? what do they buy? how do they finance their position? they create huge amounts of reserves, some of it they are paying zero rates on. it goes to the banks. that is an asset for the banks. it is a aaa asset as well. there's a kind of stealthy mutu

hsbc and standard chartered are falling in hong kong trading. stocks have further to fall below their march lows, according to jeffrey gundlach. he says the s&p 500 will not match recent highs for a long time and the projections of a quick recovery are too optimistic. he predicts panicky feelings will return to markets in april. global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. matt? matt: all right. donald trump is, as we have been talking about, warning of a tough two weeks ahead. his warning comes after u.s. health officials estimated 240,0 00 americans could die in total in the epidemic. a less optimistic president addressed the nation as he appeared rattled by the scope of death and suffering the government's scientists foresee. president trump: they are very sobering. when you see 100,000 people at a minimum number. out,ed out -- ride it don't do anything and think of it as the flu but it is not the flu. is vicious. matt: for m

is high time for the to receive such notification tom the management of hsbc sell the dividends without any plans. viviana: that is your bloomberg business flash. tom: thank you so much. a look at the data, and it is odd, just a jumble. futures up four. a 46 handle on the vix. some dollar strength. waiting on news in the oil space and in the washington space. guy: absolutely. european equities climbing off their floor. about 1.1%, down by 1.2%. we are seeing oscillation in bund-btp spread. well andar lower as brent a little bit bid right now. the day, alixr in steel and i will speak with steven major of hsbc, global head of fixed income research. always something interesting. this is bloomberg. ♪ because you can't get to the theater, we're bringing the theater home to you with xfinity movie premiere. such news. i know what this is. this is a real thing. our brand new service that lets you watch movies at home, while they're still in the theater. oh, mister elton. ahh! he has figured out a way to be invisible. they picked the wrong woman. just say "xfinity movie premiere" into your voi

europe, i tookin time to look at the banking sector, hsb shares -- hsbc shares falling. standard chartered down 6%. if you have a bank's board, this is because a lot of u.k. regulators are pushing banks and other companies x payouts. that is filtering through to banks that have said they will do it. coming up, we look at oil, after we had a headline from russia. ♪ these days you need faster internet that does all you expect and way more. that's xfinity xfi. get powerful wifi coverage that leaves no room behind with xfi pods. and now xfi advanced security is free with the xfi gateway, giving you an added layer of network protection, so every device that's connected is protected. that's a $72 a year value. no one else offers this. faster speed, coverage, and free advanced security at an unbeatable value with xfinity xfi. can your internet do that? >> from the coronavirus, we were going to be globally oversupplied on energy to begin with, and the russia-saudi disk you -- dispute and desire to pump even more makes the oversupply worse. significantly,wn 15 million barrels t

hsbc yesterday gave a range for 2020 of ecl provisions of between $7 billion to $11 billion. can you give us a ballpark figure they have 2020 credit impairment? >> incredibly difficult to predict. as you will understand there are many, many moving parts here. what this will be most dependent upon is probably two or three things. firstly, the success that countries have moving out of lockdown. if we see countries like is happening tentatively in northern asia coming through this quicker, that will bode well for credit impairment. if it takes longer, obviously, there will be more likelihood of credit impairment. secondly the extent to which states support businesses and helps them get through the period. many governments have reached yet to ot of those have become effect. oil prices will clearly play a role as well. the reason i'll put a number thope full year, it will be a higher year on credit impairment. we are well capitalized, well able to afford it. we will see how it turns out and all will become clear then. magnus: i caution use -- a cautious use of language there. $505

the dollar is bid today, and hsbc, along with a number of other u.k. banks, being pressured by the pra to give up dividend payments, and as a result of which company market is banking those payments out of stocks. u.s., it ishe another day of pain for the markets as the president suggests it could be two weeks of pain for the country. the indices are lower by about 3% apiece. we are off our lows right now. some treasury buying on the 10 year. we had a massive build in crude oil inventories. we did see crude oil dip, but we are back at $20.51. inventory is the least of market worry at this point. the dollar index 99.64, just a little bit of lightening up in liquid if the issues and the difficulties in that market. let's go deeper into the markets and see what the dynamics are. let's get to kailey leinz. day, noit is a risk off doubt about it. it was the worst quarter since all the way back in 2008. today in the second quarter, not starting off on a very positive note. europeerging markets to to here in the u.s., all of the major industries -- major indi

they advise at least 200 retail investors and does not own shares in hsbc. on some of the stocks moving this morning, all of which have dividend news. one of them is deutsche post delaying its dividend, withdrawing its 2020 guidance. the shares are down 1.8%. direct line insurance down more than 5%, it will not recommend a dividend. that is the story across the globe, retraction of dividends. but not the story for tesco plans to pay a $5 billion payout in special dividends. still tesco down 3.4%. tesco is a different story. you are more likely to be benefiting from the current environment than asking the government for assistance. let's talk about where we go on dividends and balance sheet management by corporate's. karen ward, chief market strategist emea, jp morgan asset management is still with us. , is it to bestory expected that companies, when they look at the demand picture, the outlook, they have cut back on dividends. is this driven by companies, or are they mindful of taking government assistance and furlough staff, it will look wrong, the optics w

the debate over hsbc's domicile is returning. according to "the financial times," some board members were angered by the bank of england's onion, putting pressure companies to cancel dividends. one director said, "we should not be in the u.k." and hsbc spokesperson said there were no discussions to review headquarters. the royal bank of scotland is pressing ahead with infrastructure plans and cutting jobs. that is as many of its peers halt layoffs amid the coronavirus pandemic. we learned rbs let go of the team handling rbs securities and collateralized loan obligations. we are the cuts were announced to the team on a zoom call, in a sign of times. that is your bloomberg news flash. anna: five minutes until the top of the hour. european equity markets set to the upside. oil prices substantially higher. ♪ anna: we are a minute from cash equity trading, the overall death toll of the coronavirus -- across the atlantic they will provide -- u.s. officials say -- china says it acted in an open and transparent manner. president trump

i later discovered that hsbc my bank wasn‘t landing anyone less tha n hsbc my bank wasn‘t landing anyone less than £25,000 under these. and you just need under that, do you? well, yeah, i don‘t need a huge hand—out, i just need well, yeah, i don‘t need a huge hand—out, ijust need a bit of money to keep myself going and adapt to the new environment until this all passes over, really. i don‘t need a massive amount of money. sure. my understanding was you could get gra nts understanding was you could get grants of up to that from your local authority, but presumably you have investigated already and don‘t qualify? unfortunately, no matter, andi qualify? unfortunately, no matter, and i am not a rateable business. that is only for businesses paying local authority rates with local premises. i've got you. how anxious are you feeling right now, john? i'm quite anxious, because like a lot of other small businesses, you know, we live day to day, week to week, and although we greatly appreciate what has been announced and appreciate it ta kes has been announced and appreciate it takes

we will be talking to the chief economist at hsbc and the global head of commodities for goldman sachs. this is bloomberg. ♪ francine: credit suisse it takes more than one billion and write-down and provisions for bad loans as the coronavirus hits earnings. it is the biggest such hit in more than a decade. the european economy gets crushed. output plummets in the region falling far below economists forecast. european union leaders meet today to discuss a $2.2 trillion revival plan. says stimulus should be part of the budget. tom and francine as always from london and new york. we talk about plans to test people in italy. why one region was hit so hard and what kind of advice he would give to other countries. interesting that italy is now on par with france and germany and terms are trying to open the economy gradually, still with a lot of health and safety rules by early may. tom: it is

for the paris can't get shares of major because to slow to some for quarter results from the likes of hsbc and some. i will be watching of i a. g. on what that's the parent of the beria and british airways it dropped around 1% today but after the close of trading. d. a. that it would be e cutting twelve thousand jobs in the coming months. because eric. demand for air travevel travel has all but disappeared wednesday will be a big day forr the aviation industry which results from boeing airbus and safran among others. k. moody our business editor always a pleasure to see thank you very much indeed stay safe. that's a this bulletin stay with us more to come you're watching france twenty four. moral of seven put in motion hello hello the mumughals honest to do the way here at- a your phones. at limits on the hi joel with his job will be va from rfifi radio hello. one on the fat helello ad hello hello i'm actually pleased to see e you again. what i saidid was that so much and your- not gonna make research- with basins post personalized.. a week. and the film m heard yo- he- or on the try. we h

for a bank like this, so all the rest is to do with the coronavirus, we have already heard this week hsbc saying they are setting aside £2.5 billion. they have the whole of the far east where they have a big business to think about as well, and tomorrow, we have got rbs, our other biggest bank, rbs natwest reporting results from the first quarter of the year, like lloyds, and so people are bracing themselves to hear what they have to say. lloyds's share price is down 5% already this morning on the strength of this, rbs‘s is down 6% already, fearful of what might happen tomorrow. president trump says he will not extend social distancing measures when they expire today, despite the death of 60,000 americans from the coronavirus. mr trump said it would now be down to the governors of individual states to make recommendations. the us currently accounts for a third of confirmed coronavirus cases worldwide. mr trump is keen for states to reopen their economies and he spoke of his wish to make big gatherings happen again. i think i am going to arizona next week and we look forward to that. i

hsbc slipping after adjusted profit slumped. they also cautioned bad loan charges. santander air is fluctuating and novartis up after maintaining its profit forecast. that is giving european stocks a lift, some 1.5%. crude oil $12 a barrel and dollar declining. tom: thank you so much. i believe i heard he has been known as the most interesting man in the allocation world, russ costa rich -- just a rich -- rush -- russ koesterich. we have heard all sorts of tones from bed lately or -- ben laidler's optimism and gloom. half-full or half-empty? you are going to tell me it is half-full. russ: i am going to tell you it is half-full and the keyword is "half." the market has moved quite a bit and that counts off the bottom in march was justified. at that point, we didn't know what the policy response was. people were justifiably afraid of a worse case scenario, which thankfully it looks that we will avoid. the challenge that will become harder from here is we do not know what the future looks like. it is hard for companies to provide guidance and to know what the postcrisi

hsbc upgraded bmw shares to a buy. anna: a lot to talk about in terms of the car story an interesting to see the plans are around reopening car production. let us talk about man group. the world largest publicly traded hedge fund. net inflows for the first quarter, $5 million. standing at 104 billion u.s. dollars. these numbers are coming through. they are talking about negative fxects and other -- negative and other movements. final dividend, share buyback program proceeding as planned which is interesting. are callingsses into question buyback plans and share programs. on the market volatility around the virus. dani burger pointed out the pressures. coming a week or so after they had to close two hedge funds because clients were pulling out money and there was not patient money in there. matt: do not miss our interview with luke ellis from man group shortly after 9:00 a.m. u.k. time. let us get to the bloomberg first word news. top stories from the terminal. china's economy contracted for the first time in decades in

we understand the bank with the at $600exposure is hsbc million, and others less than that. insignificant. moving quickly to where you are right now, singapore is a commodities hub and a training cub on top of that. is it too early to tell, and what impact is that having? warren: this is really -- reporter: this is really unprecedented. [indiscernible] biggeste is the world's hub. there could be enormous repercussions for parties with exposure to the companies, and then there are banks that will try to get as much cover as possible. rishaad: thank you very much, alex. managing editor for asia energy and commodities. that is currently where we are. let's check in with markets and what we are up to, or down to. this is the position we find ourselves in. seoul market, the kospi, also moving. generally speaking moving to the downside. what has been grabbing the headlines is oil prices tumbling lower than $16 a barrel. seeing at the moment a lot of focus put on earnings, and many investors preparing for a dark earnings season overall. rates on infection coronavirus and how they a

firms like hsbc scrub dividends and payouts. "elcome to "bloomberg daybreak on this wednesday, april 1. i'm alix steel. it looks like we are opening up to a very difficult new cycle marketery difficult open. we had pmi across asia, as well as in europe, but really, it is the overall negativity and just how bad things can get, particularly in the u.s., putting a lot of pressure on equities. the solution is go ahead and buy bonds. bond yields trending really close now from that record low.

softbank shares higher after ending that ten tore to buy wework hong kong adding gains as well hsbc shares down as well after the bank of england ordered those banks to scrap their dividends. australia and new zealand both trading weaker at the close. quiet today in asia. back to you. >> to the early trade now in european forces, julianna tatelbaum is standing by in london >> good morning. european markets are on the trend. all four of the regions are trading. we saw the stoxx 600 dip below the flat line trading negative we have recouped those losses and then some. this comes after a steep selloff yesterday. today, little in the way of company communication. we are watching the latest virus numbers come through one sector that stands out here to your point of oil being a key feature is the oil sector. oil and gas are very strong this morning. bp as well basic resources, auto and banks after the selloff we saw we have travel and leisure down. utilities is lagging down 1.7% back to you. >> thank you very much >>> the death toll in the united states from coronavirus has surpassed 5,000 as the

morgan stanley citigroup and hsbc have pledged this year to hold off. that is the bloomberg business flash. francine? tom? tom: greatly appreciate it this morning. we got much more coming up. a list of the equity markets, gilead news yesterday helping out but just a general left. barrel. a west texas intermediate. stay with us. j.p. morgan asset management joins us next. this is bloomberg. ♪ good morning, everyone, bloomberg "surveillance." our usual set up from manhattan, on the edge of central park right by mount sinai hospital where great people are working with is exceptionally challenging friday in medicine in manhattan. francine lacqua in less -- west london. right now, the markets. john bilton from j.p. morgan asset management, we saw your foreign exchange department make a new call on euro, looking for a weaker euro to 1.06. 1.0600, weaker euro. as you know, a multi-asset strategy is so much based all flows. what will the flows be in the coming weeks and months? john: hey, tom. first and foremost, i think that what is important is from an asse

hsbc is among the lenders. hsbc had talked about shoring up its finances. some of the banks pulled out their credit line on concerns the company will not be able to pay its debt. includeith exposure standard chartered, deutsche bank, it is a story not looking pretty. shery: what does this mean for singapore? haslinda: it is not good news. it is rocking the oil markets in singapore. this is one of the most important oil markets in the world. over the last three years, singapore has seen the collapse of two other big names in the industry. one imploded. business.just the oil it is also the banks. bankers increasingly reluctant to give the credit lines needed to survive. company can keep out of the market, bankers will find it crippling. singapore is not the only one of concern. you have to look at london, geneva. they should be watching as well. shery: thank you. let us now get a check of the business flash headlines. a canadian company walking away from a $5.6 billion deal because of the economic uncertainty caused by the coronavirus. talks began late last y

kingalked earlier with hsbc, it is time to shift to the equity markets with lazard asset management, ronald temple. good morning. you will say we have never seen a shock like this, but do we see a recovery in equity prices that is similar to before? the three days up, fine. what i want to know is where we are a year from now or three years from now. ronald: a year or three years from now we are likely to be higher, but between now and then you will see volatility. we are seeing a bit of bounce off of oversold conditions, but there is a lot more news to come. it is too early to think we have visibility in terms of how this crisis might end and the damage. i look at the markets right financialsook at the getting a big bounce. you have always been very articulate about the valuations of financials. how do they look now? ronald: if i look at u.s. financials, when i think about the income statement, there are challenges facing these companies. banks have two primary revenue generators, lending spreads and fees. the volume is going up as corporate straw the credit line so you have seen an

.f thing they tried to do tom: the great debate we are having now, we just haad-on steven major of hsbc who has calling fornt on higher interest rates. how do you assess the dynamics of disinflation in goods and other aspects through deflation, with a shift at some point to inflation? how do we do that? how do we shift from price decline to some form of new inflation? randy: there is a lot of downward pressure right now on energy markets and other markets. demand is down significantly so prices are down. to key thing this can do make sure it does not get into an inflationary spiral as we saw in the early parts of the 1930's, is to make sure they functioningtain the of the financial markets and institutions, and provide enough liquidity and reserves so the downward pressure is mitigated and you can get back to closer to the goal of 2%, but that is a long way off. professor, it is francine from london. how much more support will be u.s. economy need once we are out of recession? is it going to be a patchy recovery, a smooth recovery? how much support and which sectors where -- sectors wil

if i could get a sense from you on the estimated credit impairment for 2020, hsbc gave a range for 2020 of ecl provisions seven and 11n billion. can you give us a ballpark figure of the credit repairman's? >> credit will be difficult to predict. there are many moving parts here. what this will be most dependent upon his two or three things. firstly, the success that the companies have moving out of lockdown periods. if it takes longer, obviously there will be more likely credit repairman. especially when the states kick in and helps them get through the time. this will help them come into full effect. prices will clearly play a role as well. we have not put a number on the full-year. it will be higher than in recent years. we are well capitalized and will able to afford it. we will see how the year pans out. >> i caution the use of language there. cautioned use of language there. 505 billion dollars, you says -- you say there will be an explosion in health care and commodity care. the 505break down million between the commodity trade and their health care provider? >> you are right abou

firms like hsbc scrub dividends and payouts. "elcome to "bloomberg daybreak on this wednesday, april 1. i'm alix steel. it looks like we are opening up to a very difficult new cycle marketery difficult open. we had pmi across asia, as well as in europe, but really, it is the overall negativity and just how bad things can get, particularly in the u.s., putting a lot of pressure on equities. the solution is go ahead and buy bonds. bond yields trending really close now from that record low. the dollar obviously the safe haven of choice in the g10 space. oil getting a bit of a reprieve. the concern is you have even more oil flow if the opec deal comes to an end. we want to get you today's market moving news from new york as well as washington. we want to start with the latest pmi data. factories around the world suffering one of their grimmest months on record in march. fbloomberg's michael mckee joins me for more. there's a lot to dig into. give me some of your takeaways here. michael: mr. rogers word of the day is contraction. acr

hsbc warning its losses could reach $11 billion this year. the other big question is -- willanks will starve work for the rest of the year with the pressures that are building. prediction for this year depends on how dramatic the slowdown in china's economy is going to be this year. investors are expecting the slowest growth in 40 years, flashing the forecast for gdp growth to 1.8%. listen to this estimate from ubs . they say china's banking industry could face an unprecedented 39% slump in profits and without government for parents measures, earnings could tumble 70% to absorb the bad weight of debt. if you look at the data that is out there, the nonperforming loan ratio was up slightly at the end of march but we were seeing a massive hit on consumer debt that could get worse. wang, our china correspondent. we will have more on bank earnings later when we speak to the cfo's of standard chartered bank at deutsche bank and the birth -- the barclays ceo. this will be 1:00 p.m. hong kong time. riverfront investment group senior portfolio manager

the dollar is bid today, and hsbc, along with a number of other u.k. banks, being pressured by the pra to give up dividend payments, and as a result of which company market is banking those payments out of stocks. u.s., itn the

i like hsbc. they have no emerging market exposure crown castle is alltel domestic. don't get me wrong, all reit towers work. they have ironclad financing i like crown castle the most that said, even before the coronavirus outbreak there were signs the 5g build out might be pushed back a bit and global pandemic will delay things further. many conferences with deals get made were canceled so the narrative is damaged sooner or later the build out will happen. one problem with crown castle, it has 2% 3% yield stock is currently at the 138 range. maybe pulls back to the 130s, 2% blow off at the end of the day even after the run, i still like t-mobile i think it's terrific. my charitable trust owns verizon which is my favorite for income, okay follow along at actionalerts.com these are companies that own vast warehouses of servers that power the cloud. these stocks will pull back, but nothing about the outbreak hurts the cloud narrative. there will be more data enis terz to support people working from home. like zoom video. as i see it the data center is the best secular

said that, the economic large.s very rishaad: thank you so much, pranjul from hsbc. mumbai, it was forecast to be a down arrow and following the trend.l currently that's what we have. to be mpanies are likely in focus. 1.8% down. looking at its full year's out.ings to come they were in line. drop in fall of 1.4% revenue. relicense industries as well. what is going on with the oil prices. we have the negative wmpg t.i. overnight. that's where we are at the moment. 4.7% currently lower as well with regards to that. let's tell you about what we have on the way, virgin the most highming profile victim of the coronavirus. has kwlapsed, air travel is driving up. from sydney and more. this is bloomberg. haslinda: virgin australia has ecome the asia pacific's first ally to fall to the coronavirus. -- angus has the latest. income. all of its angus: similar story for virgin most airlines around the orld, potentially the borders came down in australia and of the as deprived all income. it's not sustainable for a virgin, it has more with 5 billion australia, a debt, $3 billion u

see -- we have seen what happened here in hong kong with hsbc, british banks, too, in getting rid of their dividends. are you concerned about companies that maintain dividends when they should not be? lorraine: what we are seeing is that those companies definitely, with the need to raise capital, we are assuming they will be cutting dividends. it doesn't actually make sense to seek capital continue to pay a dividend. let's say, in the energy space, where you have companies able to reduce upstream spending, for example. -- youron mobils shall exxon mobils, shells, quality companies, we think the dividend payout ratio is less likely. to defend the continued payment of sustainability in their payout ratios. rishaad: lorraine, thank you. of morningstar, joining us singapore. coming up, china tightening measures in its northernmost province after research of infections from russia. this is bloomberg. ♪ welcome back. beijing has announced plans to reopen schools to some students, even as quarantine measures are tightened near the russian border. our markets coanchor tom mackenzie is on t

between them, lloyds, royal bank of scotland, barclays, hsbc and standard chartered were expected to pay a total of £15.6 billion to shareholders according to analysis from the investment firm aj bell. but they will now retain those funds and not pay out any money to shareholders until at least the end of the year. the bank of england also urged the lenders not to pay out bonuses to senior staff either. however, the five banks have not yet confirmed whether they will freeze bonuses this year. i'm nowjoined by craig erlam, who's the senior market analyst at 0anda. to see you again. you can understand why the bank of england is telling banks to keep holding their cash. the question is, will it be lent out? i think from the bank of england's perspective, hopefully not. they think the banks have plenty of cash to deal with this particular crisis and to see us through to lend to small and medium—sized businesses and ensure alongside the government we see as little casualties as possible. what the bank doesn't want is for them to pay out these massive bonuses, these massive dividends an

b barclays, hsbc, standard charter, and rbs, royal bank of scotland. that's the canary in the coal mine, isn't it? charlie: i know. they s alreahave already done i. the only thing i can say is publicly, these guys are going to say no, we're not ready to do it but that's currently. every analyst i talked to, everybody at the banks say it's on the table, it's going to remain on the table because if this thing keeps going, that has to go, they will have to cut something. they will have to save money somewhere. this is obviously a recession that's hitting banks as well. why is it hitting banks, because of commercial real estate exposure, exposure to the oil patch. there's costs involved here. the other thing i hear, this is fascinating, because this is much more of a long-term trend. the banks are all talking about how to reduce their footprint in major cities. do they need all this office space if brokers, as they are doing right now, can really deal with clients working from home. so they are all talking about major reductions in their real estate footpr

hsbc and ubs are the first to report results for the first quarter in the european region. on wednesday, the return of automakers. earnings from volkswagen, daimler, and tesla will show the extent of the damage from the pandemic and how it is shaping their plans. wednesday is also a big day on the economic front. u.s.ll get a reading of first-quarter gdp, expected to drop for the first time in six years and on the same day the fed will hold its first monetary policy meeting since january. europet our attention to , where the ecb will announce its latest policy decision. is expected to leave rates on hold, it could boost its bond buying program. matt: deutsche bank says its first-quarter results will beat analyst expectations. the lender announce parliament re-figures overnight, posting surprise profit for the first three months of the year. ouring us now for more is german banks reporter on the phone from frankfurt. talk me through the biggest surprises here. >> the biggest surprises certainly a very strong revenue reporting. they did not say with the are, but fixed income

the hang seng dragged down by hsbc. research have been extended. fitch recently downgraded hong kong from aa to aa minus. we know gdp estimates for the city have been downgraded as well. appetiteack of risk across the board. risk off. rishaad: you are seeing that as well with what we have with those flaccid volumes currently, seeing perhaps a little bit of a comeback, if you will. let's quickly have a look at the tensions between the chinese and americans. beijing's ambassador to washington is the latest official to suggest the strained two-way ties are in need of an overhaul. he was making those comments during a bloomberg new economy conversation series. >> i should be hoping for more than that. not just a pause intentions, but a serious rethinking of the very foundation of this important relationship. rishaad: let's get more on these ties and bring in stephen engle. what does rethinking actually made? does it mean kiss and makeup or does it mean decoupling? you are seeing signs of decoupling through the trade war with oem manufacturers looking e