MORNING BID-Grim coronavirus predictions keep markets on edge

(A look at the day ahead from emerging markets chief correspondent Karin Strohecker. The views expressed are her own.)

LONDON, April 2 (Reuters) - Grim predictions and updates of the human and economic toll the coronavirus is taking around the globe are keeping markets on edge. As worldwide deaths from the epidemic top 43,000, European countries from Germany to Italy are extending their lockdowns, and output numbers on Wednesday showed factories paralyzed in March with mounting evidence that the world is sliding into a deep recession. Markets are also bracing for another set of U.S. jobless numbers due later today, when claims are expected blow past the previous week's record 3.3 million and climb to new highs, likely reinforcing economists' views that the longest employment boom in U.S. history probably ended in March. Talk about talks between Russia and Saudi Arabia in their oil market turf war provided a glimmer of hope, lifting crude oil prices some 10%.

Global stocks are treading water after two days of declines. Bourses in Frankfurt, London and Paris bounced briefly at the open only to lose their momentum and slip in and out of the red. U.S. futures point to gains of 1.5% on Wall Street.

On the corporate news front, one of the most spectacular headlines this morning is British Airways expected to announce suspension of about 36,000 of its employees. It’s familiar tunes elsewhere with another batch of dividend and/or executive bonus cuts at Daimler and Sodexo, while Volkswagen trims its guidance and flags job and production freezes in Mexico. France’s Engie scrapped its 2019 dividend and withdrew its 2020 guidance.

Of note is that Switzerland is resisting that trend with private bank EFG International confirming its dividend and joining the ranks of Swiss lenders going ignoring pressure from regulators. In a sign of financial stress among investment managers, Royal London is suspending dealings in property funds. On a brighter note, Pernod Ricard is raising 1.5 billion euros through a bond sale that will be used to refinance bank debt facilities. In M&A news, Novartis scrapped the sale of its U.S. dermatology and generic pill assets to India's Aurobindo Pharma after failing to get approval from a U.S. regulator.

In currency markets, the dollar held its gains against most major currencies as traders clung to the world’s most liquid currency. The safe-haven Japanese yen, however, managed to hold its position against the dollar and even advanced this week. Oil-linked currencies such as the Canadian dollar and Norwegian crown are shining as oil prices pick up.

In fixed income, euro zone bond yields nudged higher but remained close to recent lows as a cautious mood saw investors cling to safe havens. (editing by John Stonestreet)