5 things to start your day

[Bloomberg]( Follow Us //link.mail.bloombergbusiness.com/click/20053181.236849/aHR0cHM6Ly90d2l0dGVyLmNvbS9idXNpbmVzcw/582c8673566a94262a8b49bdB7a6446fb [Get the newsletter]( America takes steps towards reopening economy, early signs of success in virus treatment trial, and oil’s plunge continues. Damage done The coronavirus shutdown in China spurred the [first economic contraction in decades]( at minus 6.8% in the first three months of 2020 from a year ago. With many of the restrictions there now lifted, [attention is turning]( to how other countries will [start to get back on track](. President Donald Trump yesterday unveiled guidelines on [reopening the U.S. economy]( which could see an end to many of the current social distancing practices within four weeks. The plan from the White House leaves the timing of measures to [state governors and businesses](, a reversal of the president’s previous assertion that he had total authority to make such a decision. Treatment hope While scientists around the world are [hard at work on a vaccine](, there are signs that a treatment for those worst hit by the virus may be emerging. A report on a Chicago trial of Gilead Sciences Inc.’s drug [remdesivir]( — previously used to treat Ebola patients — pointed to [promising signs](, with patients showing “rapid recoveries in fever and respiratory symptoms.” Shares in Gilead are more than 10% higher in pre-market trading. Sponsored Content by Global X ETFs How Cloud Computing is Helping Power the At-Home Economy The way we think about remote productivity is evolving, with robust digital infrastructure and at-home work arrangements now essential to companies and employees. Explore how cloud computing is [helping power this transition](, as the virtual space where data resides, software applications run, and online processing occurs.  Bottomless oil There seems to be no end in sight to the bad news for the crude market. Less than a week after the historic agreement to cut production, OPEC predicted that demand for its crude will drop to the [lowest level since early 198](9. Earlier this week, the International Energy Agency predicted the world may [soon run out of places to store the commodity]( as demand evaporates. West Texas Intermediate for May delivery is trading [close to $18 a barrel]( this morning, with cargoes of Brent trading at steep discounts, according to S&P Global Platts. Markets rally Signs of a path [towards reopening]( the world’s largest economy and the possibility of an effective treatment are giving risk assets a boost this morning. Overnight, the MSCI Asia Pacific Index added 1.9%, pushing the gauge to the cusp of a [bull market](, while Japan’s Topix index closed 1.4% higher. In Europe, the Stoxx 600 Index had rallied 3.1% by 5:50 a.m. Eastern Time with every sector, including oil and gas, posting gains. S&P 500 futures pointed to a [pop at the open](, the 10-year Treasury yield was at 0.64% and gold was dropped. Coming up… The Conference Board U.S. Leading Index for March is expected to show a record decline when it is published at 10:00 a.m. Federal Reserve Bank of St. Louis President James Bullard speaks this morning. The Baker Hughes rig count is expected to drop below 600 for the first time since 2016 when it is released at 1:00 p.m. Procter & Gamble Co., State Street Corp. and oil-services giant Schlumberger Ltd. are among companies reporting earnings. What we've been reading This is what's caught our eye over the last 24 hours. - Odd Lots: Why the war on physical cash is [a war on freedom](. - Hedge fund hotshots [suffer humbling losses]( in coronavirus chaos. - Cantor to [cut hundreds of jobs]( in break from Wall Street pledge. - U.K. set to [rethink China ties](, putting Huawei 5G plans at risk. - European car sales [drop most on record](. - The global airline shutdown [has a surprise victim](: Gold miners. - [A megadrought]( is probably already underway in the western United States. And finally, here’s what Luke's interested in this morning Somewhat predictably, Bank of America’s [April survey of fund managers]( showed a record low share of respondents (5%) wanted to see companies boost shareholder returns (via buybacks, dividends, or M&A). Conversely, a record high 79% want management to focus on improving corporate balance sheets. Ironically, at this juncture there’s a large swath of firms for whom “improve balance sheet” means “add more leverage to bolster your current position,” as the deluge of issuance indicates. However, upon any return to quasi-normalcy and economic expansion, the scars from this crisis could result in a lingering focus on deleveraging among Corporate America. That has negative implications for future growth and equity market returns. “The flood of money going into corporate bonds is a near-term positive because it is allowing many companies to survive and term out their debt,” writes Brian Reynolds, chief market strategist at Reynolds Strategy LLC. “That corporate balance sheet transformation is a longer-term negative, as we believe companies will have to focus on debt buybacks, not stock buybacks, in the next cycle.” If this comes to pass, and as past experience with the zero lower bound dents any optimism that may be embedded in longer-term borrowing costs relative to 2009, there’s a clear advantage for companies able to credibly retain a focus on returning money to shareholders. Three companies that hiked their dividends this week – Procter & Gamble, [Johnson & Johnson](, and Costco – are all trouncing the S&P 500. So much for fund managers seeking balance sheet improvements over shareholder-friendly actions! 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