the euro is flying high versus all the g10 currencies. a lot about coming on the back of what you told us about. katherine: the unwinding has been huge for the euro and the dollar. the yield differential between the fed and other central banks really matters. if the fed has room to cut 75 basis cut five basis points in they do that, the yield advantage goes away. the biggest since the christmas eve massacre on 2018. again on the dow jones industrial average, the biggest one-day gain since march of 2009. scarlet: i know that we don't like to give the point change. it lacks context. thel, it is pretty stunning

volumesaining 4.5%, higher than average. thethe dow, about 76% above 20 day average. for the nasdaq, about 50% above. romaine: as far as some of your leaders, kind of a mixed bag. scarlet: cosco comedy that -- costco, the best performer in the s&p 500. >> i am thinking about volatility. extraordinary gain as you and romain were talking about. more big moves to the upside and probably the downside are ahead. the spring500 during and summer. when it broke, it broke into huge moves.

both the upside and downside. we are looking at the best day since then. relatively small moves, especially in the last quarter of last year. these huge, with moves to the downside, volatility is back. volatility breeds volatility. there is probably more ahead as investors try to figure out what this coronavirus will mean for the global economy. >> like most sectors, financials did really well despite the fact that the outlook for interest rates is not great. treasury yields, new lows again. financials were among the hardest hit sector in this recent correction. dropped almost 15% as a group. if you isolate bank stocks alone, they were even harder hit. the bank index down almost 20% year to date through friday. both bouncing back pretty strong

today. some analysts saying that the slump has gone too far. j.p. morgan chase, fifth third take, among the banks tracking updates today. >> the bloomberg commodity index is higher today, making it seem like commodities are doing quite well. the truth is that coronavirus sawwing are still whip commodities. bloomberg intelligence said this downward trajectory should continue in commodities, except for gold, a haven assets that should gain on the expectation of the fed to cut rates. they said that it will not hurt returns but will halt the value of your assets. gold is up about 5% this year. to renitaur thanks and everyone on the assets team. alex, we ared and

getting headlines now, trump is at the white house of a meeting with pharmaceutical executives and his health care team. he said he is hoping the fed is looking at economic stimulus. talk about what a rate cut would do. i guess the question is less what the fed can do and maybe more of what we can potentially see on the fiscal side. >> that is where investors will be putting a lot of pressure on monetary policy. quicker and easier to move interest rates than get a fiscal stimulus package through congress or any regime. for us, it will take a few weeks to see any fiscal response from any government, especially -- any government, even an authoritarian place like china. i would be looking at monetary policy stimulus in the u.s.,

maybe fiscal policy stimulus in europe first. forlet: we are all waiting some kind of response. in the meantime, there is data that comes in. does the data get discounted completely because it does not tell the picture of what is happening at the moment or what is likely to happen. our people paying attention to it? >> i think it was actually an important report. you saw commentary that this was for february, so it did completely -- so it did not completely factor in the coronavirus impact. supply chains are starting to be disrupted, which is showing us -- if you already company and your supply chain is getting impacted, you would probably benefit more from a targeted fiscal stimulus such as tax cuts

as opposed to a blanket rate cut. that is not going to ensure that you get the cash you need to rebuild the supply chain. romaine: we are hearing from companies that are not providing guidance, until they get clarity. i guess the question is, when do you think we get back to some sort of normalcy where companies are able to forecast, not that the coronavirus is gone, but they would be comfortable enough providing some sort of outlook. strategists think in a couple of weeks is when you could see the ramp up beginning. coal usage is starting to rise. there is some evidence anecdotally of factories beginning to reopen. i think it is the next two weeks toward march that you will start to feel the real impact. the question turns to how much economic upswing will come from

the top demand or how much demand destruction was there. of the bige predictions for 2020 was that the rest of the world was going to get its day u.s. assets. international was going to -- a bit. china was ground zero of the coronavirus, it got hit hard first, but we have seen a number of cases start to drop off and roll over. >> we need to see the u.s. dollar materially weekend for a prolonged period of time. the dollar weakened a lot. what i need to see to build a real conviction in the international story is prolonged dollar weakness. it started happening in the last couple of days but i ticket is

still a little bit too early to be putting those long-term investment forecasts. romaine: before, it turned out to be head fakes. what do you make of it this time? >> three weeks ago, people were worried that the dollar strength we are seeing would cause ripple effects across markets. i think the most persuasive argument is still the fed cut argument. if you see the fed deliver on what is priced into markets, that would undeniably take a hit on the dollar. romaine: if we do get what the market wants out of the fed, ofn don't you get this sort vicious cycle? >> that is the thing. that they don't have room to cut.

it is probably going to be in the form of quantitative easing. not as directly as lowering that country's rate. that really directs the flow of capital around the world. scarlet: this week, especially as we hear from different central banks. i think for us it will depend massively on the next couple of days of news flow around the coronavirus. if you see more outbreak, you will see the downside again, and investors will looking for more stimulus.

scarlet: what another statement from jay powell help or hurt? >> into meeting rate cut. that is the thing that i think would help solidify this market and sentiment. at the moment, i think they might be leaning toward 50 basis points but i wonder if that will try and come in march rather than beforehand. scarlet: katie cry felt and j.p. ld, and-- katie greife j.p. morgan asset management's alex. this is bloomberg. ♪

livene: life from blue --

from bloomberg world headquarters in new york, i am romaine bostick. in. stocks surging the most 14 months as investors look for support from policymakers. all eyes on the world's top finance ministers, set for rate global teleconference tuesday. cdc being pushed to allow state and local labs to modify coronavirus testing kits. buttigieghar and pete exit the race for the white house and throw their support behind joe biden, raising the state for tomorrow's for primary. thelet: the first case of coronavirus was diagnosed yesterday in manhattan. stocks surged on anticipation of central banks coming together to take action. joining with more, bloomberg's

shery ahn. the number of cases in the u.s. have been very low compared to other places, partly because there is some challenge in testing. shery: very surprising. is this just that we are not seeing as expensive testing as we are seeing in asia? south korea testing up to thousands of people per day. we have around 90 cases in the united states. you mentioned the new york city woman in manhattan in her late 30's. she tested positive. she is a health worker. she is currently isolated in her manhattan apartment. i wonder what that means if she is still in that apartment. we have seen cases in asia where we have seen residents from one floor catching the virus first, than someone from another floor. governor cuomo coming out and saying he fully expects a

community spread in new york but the fact that new york is now able to do its own testing is a positive. the woman was confirmed in a lab in albany. they sent the results to the cdc. scarlet: microchip technology cutting guidance, withdrawing previous eps guidance. sales would be about flat for the quarter. they were previously seeing an increase of about 2% to 9%. 1.3%ne: micron down about in after-hours trading. we heard from a a lot of companies that have exposure to the supply chain throughout asia. some are either revising their estimates or pulling them altogether. when will we get more clarity in

terms of how these companies were affected and when they will get back to normal? the moment we see any kind of economic rebound in asia potentially is when we could see a peak to the destruction. we have seen china's pmi numbers , official, falling to record lows. we have seen the bank of japan try to come out with some new measures to bring some stability to the financial market, which has prompted the turnaround. offered tot night buy many bonds to offer liquidity. a lot of rhetoric of support out there and also measures by central banks as well as governments. romaine: let's stick with this conversation about the coronavirus. let's bring in the dean of

baylor college's school of tropical medicine. thank you for being here. a lot of talk over the past few days about testing kits in the used, whether are the kits themselves are even accurate. the question, how effective so far has testing in the u.s. been and what if anything needs to be done to make it better? >> one, we clearly need to expand the number of people we are testing. we also have to shift our guidelines. right now, the cdc guidelines are focused mostly on people who have fever and cough, who are either exposed to individuals from known, effective countries, or individuals with coronavirus infection. the centers for disease control added to those -- people in

hospitals with influenza and other causes. that is still too narrow because it does not affect the reality that we have the beginning of outbreaks and community transmission in places like kirkland, washington. i have to make testing more available. have taken the first step in doing that by allowing hospitals to prepare their own diagnostic kits. andided they validate them apply for emergency use authorization. but we also have the additional problem, are we getting results that may be false positives or false negatives? in san antonio today, we had an individual, i believe from wuhan, tested negative several times, was in the community, that tested positive. what does that mean? does that person actually have the virus, is it a false

positive, is that person infectious? it is not too surprising, this is a brand-new virus agent that we have not worked with. it will take time. we've got to move pretty quickly. we are already seeing two populations going down. those in our nursing facilities and health care workers. that is showing us that we have two vulnerabilities in the u.s. that we have to address immediately. the numbers of, cases in the u.s. are still pretty low. when it does start to multiply, how quickly can our institutions respond to everything? what will you be looking for for an indication that things can be as smooth as they can be? >> my guess is we will see

outbreaks or community transmission in places like kirkland, washington, and that will pop up in multiple areas across the country. the question from there, will we have a much larger epidemic across the u.s.? the only question is, i think we have time. you will not wake up tomorrow morning and find all of new york state, massachusetts, and connecticut infected. we do know that this is a highly contagious, highly transmissible virus agent, much more than influenza. romaine: i see that you are scheduled to go down to washington on thursday to testify before the house science committee. what exactly is the message that you would tell them? i guess the second part, what if anything can congress do to sort

of accelerate things so the public feels to be protected a little better? dr. hotez: for the house science committee, i lead a group that develops vaccines. we will make the ones that they -- that the companies will not make because there is not a lot of focus. we embarked on a coronavirus vaccine a decade ago. one of the tragedies is we made a prototype coronavirus vaccine, we could not attract any funders to let us move into clinical trials. the upshot of that is we have not figured out a way to really have the vaccines we need to fight 21st-century disease. transactional,o too focused in upfront gains. we are not appropriately recognizing that countries are suffering huge economic losses and losses in global security

because we don't have the vaccine we need. a message for congress, because you cannot invest a few million dollars in vaccine development, we are looking at navy hundreds of millions of dollars in economic losses. as bloomberg knows, that is a pretty good rate of return. scarlet: dr. peter hotez, thank you for joining us. this is bloomberg. ♪ ♪

romaine: last week, a made meeting statement from jerome powell of the fed. now, a statement from christine lagarde saying the ecb is closely monitoring development. she says, "we stand ready to take more steps.

the next meeting is march 12, still a couple of weeks away. scarlet: in time, the worst is yet to come for u.s. factories according to our colonist. paid, and, prices employment, a read flow 50, which would indicate contraction. >> the lengthening out of delivery time, with says to me as we are starting to see some supply chain disruptions from the coronavirus show up. those take a long time to work through the system. as you look out in the coming months, i think that is when you will see some of that hit manufacturers. it is not necessarily pricing in at this point to -- in terms of supply and demand. you have not had that much from the core industrial manufacturers. a lot of that is mostly

supply-chain related and they are waiting to see what the impact will be on aerospace and some of the sect is like electronics. shocke: if the supply lasts for a certain period of time, does that by default eat into demand? >> i think the longer this goes on with the supply chain, the more likely you are to see the demand. scarlet: president donald trump, vice president mike pence, and inverse of the task force met with pharmaceutical executives moments ago. pres. trump: she has been to the white house a lot over her career and she is now going to be here working with mike pence and everybody full-time. we appreciate it. a real expert in her field. hard toorking very

expedite the longer process of developing a vaccine. we are also moving with maximum speed to develop therapies so we can help people recover as quickly as possible. we have a lot of recovery going on. it is likely that therapies will be available before a vaccine is actually ready, and we will seek to bring everything that is effective to market as soon as possible. you will be able to ask a couple of questions of the folks here. we are also working with congress to ensure that america has what it needs to respond to this challenge. great challenge, but everyone is responding very well. since the start of the outbreak, my administration has taken the most aggressive action in history to protect our citizens including closing our borders very early, a lot earlier than people wanted us to. sweeping travel restrictions,

screening measures, and opposed historic quarantines. we have quarantines all over the country. the coronavirus shows the importance of bringing manufacturing back to america so that we are producing at home the medicines and everything else we need to protect the public's health. i have been talking about this for a long time. that process has already started. we want to make certain things at home. we want to be doing our manufacturing at home. it is not only done in china, it is done and a lot of other places including ireland. a lot of places make our different drugs and things we need so badly. it is not good to be dealing with 1, 2, 3 countries. we are going to start doing it at home. we have been talking about that for a long time.

a lot of the drug companies, because of what we are doing in terms of taxes, they are heading back here anyway. the importance of bringing that manufacturing back to america. will have that started. it has already started. the white house coronavirus task force, led by vice president mike pence, has been meeting daily and coordinating closely with state and local governments. mike had a call today with 53 governors and i heard it was a very good call. and the states, they have been really working closely with us. it has been a very good relationship. we will confront this challenge together and continue to do exactly what we are doing. we are going to be very successful. a lot of things are happening in exciting things are happening, and they are happening very rapidly.

i would like to introduce mike. if you could say a little bit about your calls and the things happening today. >> the white house corona task force will be meeting again this afternoon. we hosted a video and telephone conference call from 53 governors. as the president said this many times, we are all in this together. today's meeting is a reflection of the fact that the president understands that industry is a part of the one team in america that is going to address the coronavirus in this country. i am grateful for these leaders to come in to speak to us about the development of vaccines but also the development of therapeutic medications that can be available in the short term. we are grateful for your participation. the president will also be traveling tomorrow to the national institutes of health and to the cdc before the week

is out. we will be meeting with leaders of the airline industry, leaders of the cruise line industry. we welcome the partnership with industry in this country as we work out the resident's top priority company health, safety, and well-being of the american people. oneme extend my welcome to of the leading experts in infectious diseases in the world. she has served in the uniform of hasunited states, she served in multiple administrations. she is going to be our right arm here as we implement your vision of putting the health, safety, and well-being of the american people first. i know secretary azar has a few thoughts and i look forward to the meeting. pres. trump: maybe you can give

a little update and then people can introduce themselves. >> we continue to see patients in the united states. we tragically have reported several more deaths today. our condolences go out to their families, of course. that is why the president is leading us home of government response. we are here working with the pharmaceutical company leaders on three key issues. we speed vaccines come out of we speed -- how do we speed vaccines and therapeutics? and what are the challenges we are facing in the united states? with therapeutics and vaccines, we want to know how we can speed that process along. we have the commissioner from the fda. this is all in the context of emergency powers, emergency use authorizations. the president will be asking you, how can we make anything

faster. how can we challenge those normal pharma lines. andcan we speed that along be a good partner with you in making that happen, especially once we get the emergency supplemental passed by congress in the next week or so. iss. trump: supplemental moving around very rapidly. >> emma from glaxosmithkline. we recognize the very substantial efforts being made by the administration. as a science company with a very large manufacturing presence -- guys were just listening to president donald trump speaking along with some of his advisors including cabinet members.

vice president mike pence is of course leading that task force. they did say that there will be more cases of the coronavirus, although the president did say that some of the measures taken so far will help to contain the spread including tightening travel restrictions, closing the border. mike pence is meeting daily with and president trump is expected to travel to the nationalistic of health on tuesday. scarlet: -- the national institute of health on tuesday. scarlet: visa says second quarter net revenue will be less than anticipated. the situation of the virus remains fluid. we will give you more details. second quarter net revenue, 2.5% to 3.5%. let's turn to the overall fiber situation.

we know that history tends to repeat itself. in his recent column, new york times columnist nicholas kristof weighs in on the coronavirus. he and his wife join us now. a pulitzer prize and have co-authored several books. you talk about how we must ensure that no one is deterred in seeking help by the cost. it comes down to a lot of different things. some prescriptions including the white house and congress establishing a system making sure that people do not pay. also, a plan for paid leave. do you want to go to a istaurant where the server coughing because they don't have sick leave.

politically, this administration, with loyalists loyalists over- expert staffing in many agencies. nicholas: it exposes larger weaknesses, and weaknesses in the trumpet ministration. the fact that we have 27 million americans who are not insured and do not have ready access to a primary care provider. the fact that the u.s. is pretty much alone in the world and not providing medical leak that medical leave -- not providing medical leave. food preparers do not have the same sick leave as other countries. romaine: is there an opportunity here where maybe some of those problems will be addressed? theyl: you are looking at silverlining, for sure. there are many americans who just stopped looking for work.

they don't have access to health care. they don't even have access to information as much as most of us in the urban areas. people in the rural areas of america are really hurting. if they do not have access to health care as well, this disease really can hurt a large swath of america. haveet: both of you reported overseas. the only countries doing it right, tackling it with a mix of urgency and transparency, the smaller ones. singapore, for instance, high marks. it is not really comparable to anything in the u.s. or china. sheryl: certainly, when we look at what china has done, we don't have the same means to quarantine people in the way that they do, even just to put up new hospitals. here in the u.s., one of the

problems is that somebody people have fallen outside of the safety net there are people that do not necessarily have access to internet and the rural areas, places like kentucky, even in parts of oregon, these people just do not have good access to internet. how are they getting information? that is also a big issue. romaine: getting back to the heryltial solutions, s mentioned what was done in societies like china and singapore. those are very different societies. there is a sense of civil liberties that we take very seriously here in this nation, where the pushback to something like quarantine i would think would be pretty severe. thinkas: i don't authoritarian societies are

models for handling coronavirus. remember that, early on, it punished doctors for raising the issue. it did not raise the issue as 5 million people were fleeing wuhan. i do not think china is a model of early response. iran clearly is not. what you need is reliable, credible leaders who give the podium to scientists. romaine: do we have that? i actually joked. when this first broke out, week sort of wanted to see who was leading the effort. this was before they appointed pence. actual doctort an or scientist. you have to ask that, who is leading cdc, hhs? is a hugelye cdc

respected organization nationally. one problem is that public health response is really done locally. influence, research, but i think among health professionals, there is some respect for alex lazar -- alex azar. letting there is very little respect for vice president pence given his handling of hiv in indiana, saying smoking does not cause cancer, etc. at the last three of the four years where we have had declining life expectancy, and a lot of that had to do with despair relating to alcohol death, drug-related death, and suicide. the issue now that we are facing is that we might actually again come to a situation where we

have another wave of deaths. life expectancy, the average will fall again. unless we take some of these , wees much more seriously will not be able to address the patchwork of the coronavirus. romaine: we will talk about this more. they are sticking with us, the co-authors of "type room -- "tightrope." this is bloomberg. ♪

♪ romaine: the field of aquatic

candidates getting old town just state supert 14 tuesday primary. amy klobuchar and pete buttigieg dropping out of the race, leaving joe biden, bernie sanders, elizabeth warren, tulsi gabbard, and mike bloomberg, who is the founder and owner of this organization. big news here the is not just that buttigieg and klobuchar dropped out, but the fact that they threw their support behind joe biden. >> they are going to throw their support behind biden tonight at a rally in dallas. a big super tuesday state and they were all pretty close. that could give joe biden a really important boost in an important super tuesday state. the question is if this establishment circling the wagons around joe biden is

really going to turn into enough votes to stop bernie sanders, who is dominant in california, who will do well in texas, in the northeast states, maybe even ine out elizabeth warren massachusetts. we will have to see what all of this will mean tomorrow. scarlet: so the default scenario is that bernie sanders will consolidate his lead following super tuesday? wendy: i don't think there is something we can predict right now. maybe joe biden will pick up enough votes to make it a two-man race. the centristlit vote, although that does not seem to be happening as much, and that would give bernie sanders a plurality heading into the convention. scarlet: thank you. to our full coverage of super tuesday tomorrow night. us, sheryl wudunn

and nicholas kristof, who recently wrote "tight rope." on whato get your take is left of the democratic candidates. the kinds of people you interview in your book, who today gravitate toward? i know there are some trump supporters but another are some who are looking for alternatives as well. sheryl: they do support trump, a lot of them. part of the reason they support him is because they feel that the entire system is corrupt. they want to blow up washington because they did not think that anyone was listening to them. trump spoke to that, saying, i am fighting for you.

if they think that someone like bernie sanders is fighting for them, it is possible they might switch. romaine: how malleable are they in political allegiances? they will just vote for who they think is going to do the job? nicholas: the white working-class, like the black working-class, tends to be socially conservative and economically liberal. the white working-class has typically voted for conservatives despite liberal economic tendencies. the fact that you have a rise of trump on the right and bernie sanders on the left suggest how much pain and dissatisfaction there is with the economy, even at a time when markets have soared, corporate profits have done so well. scarlet: one thing that goes across all political spectrums is this american idea of doing

it yourself, pulling yourself up by your bootstraps. that unfortunately papers over lots of problems because there are some institutional problems here that really punish both the working-class and the poor in a way that no amount of working hard is going to make up for. sheryl: first of all, that premise of lifting yourself up by your bootstraps is false. it is not physically feasible. narrativevertaken the , so that people internalize it and say, if they actually have messed themselves up, then it is their fault. scarlet: and the government does not want to provide help. sheryl: that narrative did really spread to the policymakers. when you think about what actually got a lot of people

from the west coast to the east coast, it was that pioneering spirit, so that we can actually fend for ourselves. it was a government program that gave them 140 acres if they crossed the country. that is the kind of nudge that we see the government still do. romaine: they wouldn't allow black people to get that. there are a lot of issues with that. coronavirus, if it does make an excuse to make things hold again, that is worth it. romaine: one of the phenomena we have seen over the past few years is the number of people coming off the sidelines, entering into the workforce. there is this kind of hidden underclass that does not normally show up the way we count these people.

what gives these people enough confidence to say, i want to look for a job, there are opportunities for me, and i want to participate in whatever this economy is? sheryl: the fact that it is much easier to get a job now, that draws them out. we still have the highest rates of suicide in the country that we have had since world war ii. and people are self-medicating with opioids. we are focusing on it now, using narcan and all kinds of treatments so they do not necessarily die from overdoses, but there is a lot of pain out there. some of the surveys we write days,say, in the last 30 people have felt pain, a large portion of them. ofrlet: you offer a lot solutions, including wage insurance is one possibility. as you talk to a big cross-section, what have they

responded to? saying, this is something that could perhaps get support from both sides of the aisle. early childhood education is something where there is increased bipartisan interest. the kids i grew up with, we write about, a quarter of the kids on my school bus are now , guns, andrugs suicide. drug treatment. it is crazy that only one in 10 americans right now they substance abuse problem gets treatment, even though treatment pays for itself many times over. with theill dealing incarceration toolbox rather than the treatment toolbox. thing conservatives kind of got right is the dignity of jobs. the solution is not work

requirements, it is things like the earned income tax credit that create incentives, and it is job training. scarlet: thank you so much. ."-authors of "tightrope this is bloomberg. ♪

the mostone of anticipated public listings of 2020, airbnb, may now be in danger of being derailed by the coronavirus. what is the issue? hurt to the point where maybe investors are starting to rethink this? or is it investors trying to get out in front of what could be a problem? >> there is a serious question here. we obviously do not know how coronavirus will play out, but we do know there is a lot of fear around it.

i think that is definitely a concern for airbnb. they will try to explain the situation to investors. it does not allow the sort of painless, triumphant ipo that you would imagine. scarlet: a lot of uncomfortable questions start popping up certain things are beyond airbnb's control. if japan cancels or delays the olympics, that could be a huge impact on its business. tried toasn't airbnb make accommodations for people who have canceled due to the virus? followinge sort of country guidelines to let people cancel. i think there will continue to be issues around how far out they are letting people cancel. to your point, the olympics

would have given a big boost to a travel company going public. now there are questions around that. it is going from having things happening like the olympics in their favor to all of a sudden having countries put out travel bands and other people proactively deciding not to travel. romaine: airbnb, a lot of people set this company could have gone public last year or before that. is there a little bit of regret now? was really old ceo pushing the company toward an ipo. there was an option that the company could have taken a more aggressive stance and would not have this situation now. bill gurley is sort of making in point that it puts itself a tough situation now by waiting. scarlet: our thanks to bloomberg's eric newcomer in san

francisco. coming up, or special coverage of super tuesday tomorrow at 7:00 p.m. eastern time. kohl's: target and reporting earnings tomorrow. scarlet: this is bloomberg. ♪

"bloombergome to markets." i am emily chang in san francisco with paul allen in city. coming up in the next hour, u.s. stocks search the most in 14 months with finance chiefs set for a coordinated coronavirus response. the virus claims for more lives in the u.s., bringing the total to six. also, an update from mike pence.