likely, that the possibility we could have a quick snap back from the coronavirus is a disruption to the supply chain and the unknown in the u.s. and around the developed world in the numeral and this is the s&p 500 and the last year in an uptrend is pretty choppy and here's the big decline at one point down 13% if the true v-bottom technique we were going to be in shape, we would so the s&p 500 above the 200 day moving average and above that redline around 3000, however the dow transports below the low taking a strong case that we are likely not to have a be bottom or taylor that the bottom that you were talking about million fact have an l-shape to it. the bondgoing over to markets, the 10 year yield, dropping below 90 basis points, you wonder if her on the path to negative rates.

said the fed was justified cutting rates. it means asow what we look across assets, the dividend yield minus the 30 year bond yield, the spread between the two is the widest. that the 10 year today.itting 106 earlier >> thanks i'm looking at crude oil as saudi arabia tries to force russia into deeper output cuts. this standoff is pretty unprecedented since the time the alliance was created.

saudi arabia may be willing to walk away if it doesn't get a positive response from russia. thanrude oil is down more 24% this year. thank you. reporterh this is our and guest. we looked at the sectors, , nowhere doing good. are there that you would like tomorrow and in the future that you have your eye on? >> given how stretched to the downside bond yields are, and if the news flow gets worse in the near-term coming yields can go lower. there is some opportunity in the cyclical areas.

i'm not sure we are quite there yet. it doesn't mean we have to ,actor in prolonged recession but even if you take the microcosm of new york city, it feels like it is starting to filter in and were starting to see corporations react. stocks are roaring ahead on a cyclical reflation story is hard to see what that's happening in the background. risk on traders are watching the 10 year. the 10 year yield is leading the way. >> absolutely. people think the bond market will tell the future more accurately and quicker. romaine: what is volatility telling us? >> that things will be rough tomorrow in the day after that in the day after that forever.

when you look at implied volatility and overlay that across historical volatility, what is that telling you? >> implied volatility is very high in your 95th percentile by trading history, but we are realizing about that. if you look at the 10-day and compare that to the vix, the actual market moves are higher, so there is this cap between those two. that has been reconciling higher and killing everyone who tried to get an early. in previous volatility, we usually have some idea what it would take to soothe the markets. joe: when is mario draghi going to say something? when what they announced the

phase one trade deal? what would it be here to say ok, this is good, this is something. is not asly it financial problem, so we had a muted reaction to the 50 basis points cut. it is about people pulling back on spending, so if people have more money, that could be positive, but people are going to look at the data on the virus. people were very keyed in on china. i think people will be looking at those metrics and the west. either things will get worse before they get better in the states, or the u.s. government would do a phenomenal job containing it. scarlet: they have to test people first. much trust is there around the numbers? >> the bigger problem is not the trust and the numbers, but the

lack there of. it's why you don't blame the fed for trying. you blame everyone else. the s&p 500 being up is still bugging me because credit spreads are wider than high yields pbx, much lighter, the last time we had this discrepancy on the weekly basis between stocks up in credit , september 21, 2018, so q4 turned out pretty rough. romaine: your soaked our now that you cleaned up. i like it better when you were scruffy with the beard. everybody is looking so tan and rested. i feel like i need to take a break. scarlet: we want to thank our

panelists here. that does it for the closing bell. "what'd you miss?" is next, where we will be looking at testing kits for the coronavirus. what has gone wrong and what can be done to improve the situation? this is bloomberg. ♪

york.e: lion from new york,e from new

volatility gripping markets, indices down. joe: "what'd you miss?" testing the lack of kits raising concerns about vulnerability and u.s. efforts to contain the coronavirus. arabialtimatum, saudi striking agreement to cut production, even without waiting to win over its russian ally. 3.29 percent, u.s. homebuyers rushing to lock in the lowest 30-year mortgage rate in history , and some are, lower rates may be ahead. when it comes to containing the epidemic, south korea may be cracking the code, doubling down on testing. joining with the latest is shery ahn, a little depressing looking at videos of dry through testing facilities in korea where people can find out in a couple of minutes whether they have it or not versus the daily drip of stories here about people not

having the capacity. deaths for11 confirmed cases of 126, the math does not add up. it is depressing to look at those dry through's, but so efficient. you don't need to get out of the car and infected the people on your way to the doctor. feelingseen south korea this pressure to do more when they had to face the outbreak 2015. south korea has tested more than 140,000 people. more than 10,000 people a day. thatre that to the fact u.s. is still working on their one millions testing kit this week. they will not get there. they have only tested 2000 people at the end of last week,

same thing with japan struggling with trying to hold the olympic games, but right now they have only tested around 2700 people were so. south korea also has four different companies approved to make the testing kits for the virus. exportingalks of these kids to other countries. >> one company invested a huge amount making these testing a kits during the lunar new year holiday. one reason they could move so fast as after the 2015 outbreak that regulators needed a solution to get these kits to the public. track approval process, regulators working together with these facilities to get these in place, so now

withinve 95% in results hours, which makes a huge difference at a time when you see all of this spread and you negatives.some false thank you for the update. >> we have the supply shock and demand shock. beginning it was only a supply shock. now we see taking into account globalization and the supply chain at the global level and all the consequences of the fear that is accompanying this

pandemic. economic response, economic fallout, joining us now as our guests to walk us through all of this. this was viewed as a supply shock, something that would be .hort-term >> it is a demand and supply .hock , that took ae it long time for the economy to recovery. it takes time to work your way , but it comes back quickly. the only efforts to

stabilize markets is from the central bank. what will it take for industries to get a meaningful recovery? we need a robust response. some the things they're talking about, for example, ensuring people who don't necessary have full health insurance can get testing and treatment. those are policies that will help contain this. do you see any evidence we are getting that? did pass theress spinning to bill and it is on the president's desk. >> nancy pelosi today was

talking about expanding access to health care. hearing discussions about income replacement for people who will miss work but we may need a payroll tax cut that could be implemented quickly. scarlet: the federal government move slowly. can it be done at the local level? >> some can be done at the local level. state governments can move some those things as well, but alternate this is a national issue and using outbreaks all over the country. i think you're starting to see the movement there. >> were looking at certain industries. travel has been hit hard here. when do we get to the stage where we have to start talking

about bailouts or something similar? things most directly , things our travel affected by social distancing. we can expect that on restaurants and hotels, but we don't know how long this will last or how bad it will be. ways to gove a before we will know all those things, so a lot of things can be done to contain this that needs to be the focus at this point. >> should the markets care about the widening budget deficit? of reasons thets bond market is insensitive to the physical side, so that is not a primary concern at this point. scarlet: thank you.

ceo, the old a new navy leader who served as ceo since 2016 and named the next ceo. bobby martin will take the role as executive chairman, effective march 23, and two individuals will join the board. romaine: costco earnings are the estimate. revenue is a beat. the comp sales numbers, up 8.9%, estimate 6.3%. february numbers came in on a comp sales basis excluding gap, 11.7% versus 6.8%. the company said february sales benefited from coronavirus. scarlet: i can give you

anecdotal evidence. i was there over the weekend. everybody was picking up whatever they could. people were talking about how they had to stock up on toilet paper, bleach, vinegar. shows down right now. they rallied yesterday. this is bloomberg. ♪ his is bloomberg. ♪

romaine: mortgage rates hitting a record low. may be on thels horizon. let's bring in someone who covers this and knows more about it. droppedirty year yield

to 3.29%. you look at the 10 year yield right now, 91 basis points. 30 year yield, there is a differential. when does that cap narrow? cape are seeing a white between the treasury and the average mortgage rate. traditionally it is much higher , right north1.8% of 2%, so it remains to be seen when it will narrow, but it is often a few weeks after drop in rates. we were talking about credits bledso spreads blowing . if you use our high-quality credit, it is awesome. you should lock it in. >> there is interest from some people who might save some money by refinancing.

week and people refinancing. if you're trying to refinance, you probably only care about what rates you will get. anything about a bigger economic slowdown that a new volumes scarlet: there are a lot of people and paperwork to get through. you still need an in person meeting at some point in the refi process, to sign the paper or have someone check your property. that will be something people still have to go through, right? >> definitely. a bunchn't want to fire of mortgage loan officers. that can create problems. we have tons of refinancing applicants coming in that keep rates higher.

what is the ripple effect for people invested in that market. they have to be a little concerned, right? >> when we see rates go low like can cut into the return on the mortgage loan investor. mortgage andave a haven't refinanced, somebody is making excess money. romaine: are you refinancing? where you going after work? work as a loan officer. scarlet: let's check the latest headlines. google's cloud unit is teaming up with at&t to come out with business products over 5g networks from the latest high up hoping to cash in on faster connectivity. that 35 billion

dollar unsolicited takeover bid from xerox. of shareholders. has consistently rejected these overtures. havoc fors wreaking airlines as travelers rethink their plans, but for those who still want to fly, the finding much lower airfares. a round-trip ticket between chicago and san francisco is $300 to $400. right now, $137. travelers can fly from new york to london for less than $500. the travel industry has taken a hit as the virus has spread across the globe. that is your update. opecg up, oil prices, takes a gamble on russia. we will discuss next. this is bloomberg. ♪

>> this is your first word news. suspended heren presidential campaign today after failing to win any states

on super and seeing no path to capturing the democratic nomination. she declined to throw her weight behind bernie sanders or joe biden, telling reporters she wanted more time to consider her choice. this isardest part of all those people and little girls who will have to wait four more years. >> senator warren says she could be a bridge between the two wings of the party, but the election results show that cannot be the case. the senate passed a measure to tackle the coronavirus outbreak in hopes of reassuring a fearful public in accelerating the government's response to the virus. the house passed the bill yesterday, so after today's vote

in the senate, the big heads to the white house for president trump signature. sole no votet the today. 95,265 said there were reported cases of covid-19 you'dly, and 3281 deaths -- deaths. the who director general said in the past 24 hours, china reported 143 cases, most coming from hubei province. china, 2055 cases were reported in 33 countries. around 80% of those cases continue to come from just three countries. we see encouraging signs on the republic of korea. the number of newly reported cases appears to be declining,

and the cases being reported are from identified primarily known clusters. countries "this is not a drill. this is not the time for giving up. this is not a time for excuses. this is the time for pulling out all the stops." vice president pence is pledging federal officials will lean into the fight against the new coronavirus. the vice president commented from minnesota, where he visited with the leading maker of masks and use to stem the spread of the virus. he spoke at the meeting with the ceo of 3m and minnesota governor at the company's headquarters outside minneapolis. the vice president at this for americans, unless you are ill, you have no need to buy a mask.

global news 24 hours a day on air and on quicktake by bloomberg powered by more than 2700 journalists and analysts in over than 120 countries. romaine: starbucks updating its expectt, saying it does fiscalrse impact for q2 2020. it says this is primarily confined to stores in china. he said chinese same-store sales growth had been expected to rise 3% in q2. it will fall 50% in the quarter. it did reiterate that no stores in the u.s. are affected or are the financial metrics affected by this forecast. recommendingisters a large production cut to offset the hit on demand from the coronavirus. comes betweenif russia doesn't.

isning us with more cornerstone macro global energy .conomist can a cut make a difference here? >> we need a cut. were talking, fighting, showing disunity, very far from preemptive, proactive, any of those words mario draghi's to use, they are not being used. scarlet: what is russia's objection? >> we don't really know. scarlet: just leverage? >> are they playing a game, leverage? of rinks mengame

ship. -- brinksmanship. romaine: when you look at the , is it viableance anymore? we talk about these production cuts and russia really hasn't lived up to the production cuts promises it made. saudi arabia has shoulder the burden. what is in it for saudi arabia. if you let go, prices will further than imagined and for longer. early 2016 we found out the weak link is saudi arabia.

so you will be draining your coffers. romaine: how much did the aramco ipo complicate things? anointed minister proud ofs mighty bringing the ipo to fruition. some say it now the pressure is off. the pressure is not off. the only thing your economy floats on is the price of oil. some signs of recovery in china already.

could that put a floor under the price of oil if we get some stabilization? could have if the virus stayed there, but it didn't. that is a big problem. that is what the market is trying to grapple with. that is not just your market. western europe is now in play, so to speak. then north america is. have many more people will stay home and for how much longer and not consume stuff like oil? we saw some companies pulling back in the permian. do you expect the trend to continue? >> the more prices stay low, the more you will see pullbacks in capital spending, yeah. romaine: thanks. this is bloomberg. ♪

♪ romaine: time now to look at what stories are trending. jeffries paid executives bonuses work's fall.e the bank's board has authorized $10.7 million in cash payouts to the ceo and his deputies and saying the collapse was completely unanticipated and dramatic. for theg.com, fighting right to repair farm equipment. this as other manufactures with thee industry

data and software, making it farmers to fix the problem. hillary clinton is addressing the double standard of women presidential candidates. even though she did get the democratic nomination, she says there is still a double standard when it comes to winning running for president and was thrilled with this year's diverse field. you can follow all the stories online. approving a. senate $7.8 billion emergency spending bill to battle the coronavirus. mark warner's pork earlier with kevin cirilli on capitol hill. take a listen. public believe in a health emergency like this that testing should be free. be provided with

more liquidity to finance that testing rapidly? with people today and i have urged him to look at the front levels of financial forbearance, credit cards, interest payments. we could have a huge challenge here. some ability to work with regulators on that, but we need to make this happen. this is not just about workers and families. i was with 30 startups last night in arlington virginia, many saying if this goes for a few weeks, their businesses will shut down. from an economic security standpoint, the administration has not treated this according to wall street measures as a potential recession, so what i

am wondering from your vantage point is are you satisfied by the response? were not seeing the same response from a 2008 perspective from regulators. white househink the has responded appropriately. think the scientists are wheng their darndest, but the president undermines experts , no, that is not appropriate. is why we seebout the fed cut interest rates to shore up the market, that is fine for investors like me, but what about families, start up .usinesses how would you rate the

economic response from the administration so far? >> the fed's response has been appropriate. the white house biz underselling the seriousness will hurt us. community business trust what is coming out of china, that they are handling this with the utmost transparency? china iselieve handling this with transparency. >> their authoritarian regime allowed them to lock people down and away we could not do here. let's lean into this. other countries have paid family leave. scarlet: that was mark warner speaking with kevin cirilli. u.s. senator say the trump administration won't meet its

promise deadline of having one million test available by the end of this week. the lack of testing kits creating vulnerability in the effort to diagnose and contain the virus. becker.us now is scott those that build effective lab systems that monitor and detect public health threats such as the coronavirus, what is your biggest concern when it comes to the testing kits and the lack of availability? >> sure. thank you for having me on. i think obviously the problems we had with the initial test kit rollout from cdc was a big problem. that put us on pause for a week and a half. am pleased to report 69

laboratories are offering testing. we have more coming to the weekend and early next week. thecdc has remanufactured test and procured additional testing kits, and those are .oving through the system i feel like we have turned the corner. the problem appears to be solved and we are moving on. joe: i am still confused. this has been a serious thing since late january. when china started doing shutdowns of transportation domestically, limiting flights, we heard from a lot of officials say we bought time, now we have to use it.

in your sense in your view, how well did we use that time? not had thewe had problem with the first test kit, there would not have been this gaping hole in our response, and at that point, it did put us behind. i think we are really looking now to take on the testing that will occur. i know the administration said there will be one million test kits. i can speak for the public health lab system, the governmental side of that, and we are expecting capacity to do 10,000 tests a day. might not sound like a lot, but the public health system is doing the testing for high consequence patients, contact tracing for surveillance purposes, so our job is twofold,

.iagnostic there was a gaping hole, and i'm sure there will be investigations. theone thing i can say is public health system is resilient, so we will learn from whatever the missteps were and take that into the next response, because there will be another response. we are seeing tests is a per capita basis that are much higher in south korea and elsewhere. how concerned are you that people, potentially infected people, might have slipped through the cracks under out there spreading this virus. >> i am concerned. we know that has happened. of thosehat is one things we can never let happen

again as a nation. outave to figure pre-positioning assets. you can pre-position contracts with companies to scale up diagnostics. that has to happen. with the announcement today from commercial laboratories they are gearing up, that will take a huge burden off our small but thattal network, will also massively increase capacity in this country. we also have to take lessons learned from other countries. i don't know how south korea was able to do the testing. that is something i want to learn, because we need to be better, and we can be. they learned from the outbreak a few years ago, said they were prepared in that regard.

they will launch a coronavirus test surface and it is in position to begin providing testing on march 9. how much of against change or is market andg into the other countries following suit? >> it is huge. what typically happens is the cdc will deliver the test to the public health network. circle is that the public health level, and the and is to the clinical commercial laboratory community, where we have seen massive scale up. i remember in 2009 that is what happened. the fact that the tests did not work initially was not in our playbook, so this is one of

where we can prep some things. country, we had very few cases of mers, so we didn't learn our lesson then. for this, let's hope we will do better. help keep us safe out there, scott. from new york, this is bloomberg. ♪

joe: senator ending her presidential campaign today. the field now a two-person race between joe biden and bernie sanders. we have the latest from boston. how does this shape the dynamic?

is there one obvious beneficiary of her departure from the campaign, or are her voters likely to vote among the remaining candidates? >> supporters are split down the middle when it comes who to support, joe biden or bernie sanders. this is why her endorsement is pivotal. it makes sense that both campaigns have tried to reach out to her to get her to support them, because both campaigns can benefit from what elizabeth warren can do and what her supporters can do for her movement. you have someone like bernie sanders, trading joe biden, and can get a boost from those supporters, but also from her pragmatic policy proposal that she can bring into his progressive movement. you have someone like joe biden who is a moderate candidate and trying to avoid a repetition of

the division the party faced in 2016 when it came to hillary clinton and bernie sanders, trying to bring in progressive voters, and those voters could be voters for him. was that pragmatism a help or hindrance in her campaign? >> it was both. in started with 3% support january in the shadow of a scandal over her native american ancestry, and back in the fall in september, we saw her prize in the polls to hit 26%, and that happened because she had a message that it anticorruption that were basically backed up by these plans. over one year,s one year, roadmap to her vision. she struggled to answer questions when it came to her

most expensive proposal, medicare for all, some 25 point trillion, so it really hindered her standing in the race, but are starting to ask questions. ,carlet: thank you coming up u.s. trade balance at 8:30 a.m. joe: i'll be watching the jobs report. romaine: that is all for "what'd you miss?" have a good evening. this is bloomberg. ♪ s is bloomberg. ♪

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markets." ♪ up, stocks tumble as volatility grips markets. cases klein in. fed cases climb. we hear from