>> oil armageddon. russia refuses to make a deal. crude stressed, reverberates in the credit market and companies. reaches half ald percent while the entire curve falls below 1% for the first time in history. ,s italy looks locked down central-bank scramble to help. looking to "bloomberg daybreak." i'm alix steel. it will be a tough deal for a lot of people. it might feel like 2008, but it is not. we will give you the insight into market reaction and how to protect yourself and take advantage of market opportunities. s&p futures are halted, limit down to 5%. you can trade above that but not below that. the i can tell you is that spy is now down by one point. that is friday's close.

we are down by about 5, 6, 7%. european stocks off by 5%, 6%. dollar-yen was treading -- trending towards 100. moving to treasury has been tremendous. 45 basis points on the 10-year, german bun yield -- german bunds yield down two basis points. theseonly down 23%, but are historic moves in the markets. to get another read on how the s&p might open up, we want to look at the five biggest stocks within the s&p, and they are now down between 5% and 6%. we want to update you on the global exchange. we will bring you all of today's market moving news from all over the world from hong kong to london to rome. all bloomberg voices are on the ground with top stories. we will begin with market action, particularly in oil,

brent crude plunging 31%, the biggest drop since the gulf war in 1991. joining us now is annmarie hordern. annmarie: we are seeing a massive selloff, unprecedented in the oil market. we have between shots. at the same time we have demand destruction across asia, in europe and the united states, we have producers deciding to put ample amounts of oil in the market. this weekend with aramco slashing the most in 20 years. -- which signals the world is flush with cheap crude. in terms ofly awful where the price action is, and of course during european trading sessions we saw the tradersf the major oil peered bp down 17%, total down 11%, royal dutch shell down 7%. the biggest oil majors in europe getting crushed.

we see price action on wti and brent. alix: we have also seen shale producers start cutting their capex. it could get dicey for big oil. ehrenberg said they could see a ebit.r oil companies ismarie: goldman sachs saying they/their forecast just before the market opened in age overnight. it could go as low as $20 a barrel on brent. what does $20 a barrel look like ? an acid disaster. what -- an asset disaster. what does it mean for oil producers that their budgets are around $80, 80 five dollars a barrel? there is supposed to be a potential committee -- maybe that is the light at the end of the tunnel. we already heard from rose nest this morning, saying they plan to amp up supply starting in april. we will see a flood of crude in

the market. alix: thank you very much. we will take at the -- we will take a look at the equity selloff with dani burger. walk us through what you know. dani: it looks like it will be a tough open in the u.s., really brutal selloff in the futures market. as you noted earlier, hitting the circuit breaker, falling 5%, the limit put in by cme to contain volatility. volatility looks like it will be up and running. traders noted that there is thin liquidity to start the morning with what looked like some hard-hitting selling into the equity market. oil is contrary thing to this latest leg down. to be clear, it is not just the oil stocks that annmarie hordern mentioned that are falling, it is the entirety of the global equity market. this is what happens when we are in a world of diversified portfolios. this is a fire sale, investors

selling everything they can get their hands on in a grab for liquidity. in europe, the markets are up and running and we see the damage. the stoxx 600 is headed toward a bear market on track to 21% from the february high. the individual regions look the germany --ly, u.k., at the end of the day. oil and gas taking the hardest brunt of the damage in the stoxx 600, falling the most on record. as andrew ellen -- as andrew brenner from that alliance said, stark language, he said we are in the world of the black swan. alix: and you are looking at the 11th anniversary of the bull market in the u.s. burgervery much, dani their it i want to go to treasury yields, getting battered with the curve below 20%. taylor riggs has more. taylor? taylor: every yield curve in the u.s. under 1% this morning. i wanted to focus on the short

end of the curve because that is what we are seeing some of the major market moves. taking cues from overseas. if you look at the u.s. yield curve, some say it is negative lower bound, perhaps going through that. about 30 basis point or so. the u.k. two-year at 40 basis points. the german two have an now -1%. if you flip up the board and look at a chart i am showing inside my terminal, jeff gundlach is tweeting that the 30 year is really where all the big moves are happening this morning. we are down now 42 basis points to below 1% for the first time on the 30-year, and we knew on friday it was blowing through three standard deviations. my math does not go that far. i cannot count the number of standard deviations. a 42 basis point move on the long end represents --

seeing spreads really blowout high-yield as well as id reverberating on banks is energy. taylor: we have to be careful to compare the high-yield and the investment-grade spreads low out to previous prices that we have seen. this is not too thousand 8, 2 thousand nine, so when you see 2008,s -- this is not 2009. that is where you are seeing a lot of the problems. we have seen a few of the fallen angels. can makeee how those sure how they can be retaining some of that debt. alix: taylor riggs, thank you very much p the backdrop is coronavirus, which keeps spreading, worldwide cases passing 108,000 is stephen engle. more action is being taken. stephen: that's right.

the economicl, toll in china and japan and elsewhere in asia, as south korea says it might have seen the peak of infections. japan is struggling economically. i will get to that in a minute, but china is seeing exports absolutely drop off the cliff in the january to february 2-month period, down 17.2 percent. imports also falling more than expected, down 4%. a top government medical advisor, a top epidemiologist in china, is saying that this outbreak could last until june. of course, we have seen this asnomic tester fee in china factories have not been able to get back in action. also we are seeing the government, as they have limited the number of new cases, and the new daily death toll has been lowered. they are now focusing on containing inbound infections in china. in japan, where i just came back

last night from northern hook ido island, where local businesses tell me they are seriously suffering. we can see it in the numbers, exports falling. , gdp falling, a bigger than expected 1% in the fourth quarter. that was not taking into account the virus impact. what we could see in japan, what many economists are saying, a prolonged possible recession in japan. alix: stephen engle, thank you very much. italy, where yields are feeling the effects from the coronavirus, the 10-year rising 25 basis points after the government posed a lockdown. alexander,oane is ashmore from rome, alexander. what is happening on the ground? >> the government seems to have and theyhe response announced sweeping new measures. it started to change now and

local authorities seem to be starting to stop people from whatg inside and outside they call the red zone in most of the north, the most productive and richest area of the company. -- of the country. we will see if the government takes more steps. in the meantime, the stock market's down as low as 11% today. yields are going up. spreads touched higher than in a year. alix: what about fiscal stimulus? it looks like it was approved against the fiscal deficit? >> yes. the e.u., for the european union for now, has found it ready to help italy. hasy is going to -- it already noticed a 7.5 billion euros stimulus package, 8.5 billion dollars, and the prime minister said today there is going to be more because of the impact on the italian economy.

all over the place, and it is impossible to see forecasts as low as 9%, contracts of gdp in the first quarter. alix: thank you so much. that is euro set up for the markets. we will have more on your trades and analysis, how to protect yourself and what to do on a day like today. take it easy. we are going to make it. a number of futures are halted. you're looking at circuit breakers there. the s&p is down 5% or 6%. this is bloomberg. ♪

alix: time for first take. we will give you the news and you can get analysis on the markets.

gina martin adams joins us. hooper.stina gina, i said at the beginning of the show, take a deep breath, it might feel like 2008 but it is not. what do you think on a day like today when you wake up? cues i think you take your from where the market is on the short-term. it will be a panicked open to say the least. but think fundamentally, what is the reality of lower interest rates and oil prices on the oce economy? the consumer is effectively getting a tax cut, with her was a fiscal plan. that is a good thing. oil prices make it worse for the consumer. interest rates make it worse. we are pretty accustomed to panic and economic growth. innearly had a recession

2015. near-term downside risk is pretty strong on equities, but ultimately those two cases proved to be buying opportunities. i don't think there is anything like 2008 today. i don't think this will be a massive financial panic. i think instead it is something of an economic panic them elected 2001, where consumers shut down. we had a lot of halts on business travel. we did not do anything for a couple weeks and it created a lot of market turmoil. ultimately i do think the reality of this is going to be better economic growth into the second half and we will come through this and this will be temporary. alix: i think so much of what gina is saying is absolutely right on. up until friday, i really likened this to more of a 9/11 kind of event where consumers were staying home. we saw the nesting phenomenon back into thousand one. i do think that the disruption in oil markets complicates the situation because it puts a lot of pressure on the credit markets. i don't think it is 2008, 2009.

i don't think it is the global financial crisis. i do think it gets worse before it gets better. i am hopeful it will be a short-term situation. the problem is that markets do not have confidence in governments providing appropriate policy support. i think that is what we have to worry about. they are very accustomed to central banks shoving monetary policy support out the door. andwhat they really want, central bankers have even said this, is fiscal stimulus that is what we need to look for right now. i think especially in the u.s., --kets remember how narrowly i think that serves as something of a scary scenario as we head into the eye of the storm. alix: with longer-term fundamentals, one of the interesting things into thousand eight come if you look at the industrial sector in profit margins, they did not take a dip

monger term because there was no demand. it is interesting when you're at southwest airlines, last week, saying we can offer flights at any price we want to, but people are not buying. short-term payment is going to be bad right now, but longer-term, we could see some of the margins protected, and for the airlines, oil is an offset. that is a cheaper input cost that easier. >> absolutely agreed. the country that will probably benefit the most, the most quickly, is china because it is on the other side of the coronavirus issue and it should benefit some of the lower oil prices. but i think that is where we are headed. and event is dependent on our policy response. brooke: in terms of trajectory, we are seeing a demand for domestic demand. that has come back quickly and you're seeing volume pick up as well in terms of how quickly we can get out of this.

it is a positive indicator. does it hold? is it just a clearing out of backlog of people returning home or some of these goods that have piled up at some of the ports? alix: or there is a narrative that people can go back to work and there is stop and go. gina: i think you are in for continued volatility in the short run, but one of the things we noted last week is that chinese equity prices are not making normal lows as well as the rest of the world is. emerging markets in china suffered a dramatic decline since january, and the earlier february has started to pull out of those declines. you also probably start to see some differences emerge in the global equity markets between the oil producers, the commodity dependent produces versus the commodity users. as oil prices fall, producers are going to suffer more than the commodity users nationwide, and that will be reflected in equity market surgeons good

morning. ♪ in equity market surges. i also want to point out, the german five-year bond yield is points, 10 basis at almost -100 basis points for the five year, bringing us to another huge part of the market, the record low yields. the u.s. now under 1%. when you look at that, how do you buy, but how do you not by at the same time? that has to mean something? like we are not going to go from .5% on the 10 year back to 1.5 like this. kristina: to your question about how do you buy now, i think investors should be on the sidelines sharpening their pencils, writing down what they want to purchase. i cannot call the bottom today, but i think we are closer to a bottom then we were on friday. and there are opportunities

presenting themselves, those opportunities look at her and better as the yield goes down, especially opportunities -- equities that produce income. because income is getting more and more scarce. that i think is what ultimately gets investors back in the market. but i do think there needs to be signs that fiscal policy response is appropriate. that is going to be important. italy is providing a nice dose of what i would call appropriate fiscal policy, but we need to see that coming from the u.s. i totally agree. we have updated our strategy over the last two weeks. into health care consumer staples and even technology, which are the biggest companies, the fastest growing companies in an environment where growth is scarce. the market starts to migrate to

growth. then momentum strategist or the one thing i would say to be wary of is the equity market is a dangerous game. those are increasingly high risky,ncreasingly very so investments, a lot are energy name, which will have a degree of credit risk. we are starting to see that really pressure small and mid-cap shares where energy is a bigger portion of those markets, so you do need to pick your spots relatively carefully. there are opportunities likely to emerge from this. atx: you're still looking exxon, bp, chevron, they will have a hard time with their buyback and dividend strategy when oil is at 30. so even in the noncredit sense -- -- i do wonder, for the manufacturers, how much of a benefit interest rates alone

really are if you look at how low rates have been, and these come needs are still dealing with the trade war fallout and many of the tariffs are still in place, hitting predominately of industrial companies, i do not see interest rates alone are going to do that. alix: thank you so much. brooke sutherland of bloomberg opinion. thank you for helping us break it down on this difficult day in the market. all the charts we used ghout the show, g tv is where you want to go. this is bloomberg. ♪

>> you are watching bloomberg daybreak. i'm viviana hurtado. we begin with wells fargo chair betsy do. she quit a day before a potentially dramatic congressional hearing. a u.s. committee will examine

the board role in the wells fargo scandal. duke scheduled to testify she had been the most senior woman in u.s. finance. democrats accused wells fargo's board and executive of weak management. now to apple. most of the company offices employees will be able to work from home. tim cook called it a challenging moment, saying he wants to ensure apple workers are able to work safely. setback foranother boeing. u.s. regulators told the company wiring on the planes does not lead -- does not meet legal standards. could trigger nose-down movements. the cdx investment grade index, 42 basis points. it is surging the most since the collapse of lehman brothers. like i mentioned at the top of

the show, that might feel like 2008 but it is not necessarily 2008. that is the investment grade market. now we take a look at the high heaven yield energy market, because that is where we will see reverberations. saudi arabia dumping oil into the markets. no longer a low cost producer, and this is why the race to the bottom is going to win. this chart shows the one reason why. that of thethan saudis and other exporters. the problem is how much it winds up costing to keep those wells afloat versus saudi arabia. we will have much more on oil in a moment. as to where the opportunity is and how bad it will get in which producers will not make it. this is bloomberg. ♪

"bloombergis daybreak." i'm alix steel. happy monday. it is going to be a rough day, so take a look at where we are trading across equities as well as bonds.

we have european stocks down 6%, banks getting hit hard as well as oil, as well as airline and transportation companies. banks getting hit hard because you have the 10-year in germany rolling over, negative, 87 basis points. superlatives coming in, the five-year negative, same with the five-year hitting record lows. the dollar higher on the news, the dollar taking it on the chin. other asset classes, is similar story with a rush out of everything, buying the dollar-yen -- buying the yen, the dollar-yen at one point. both flattening in a big, big way. a huge bid on the long end. we have $78 billion worth of supply coming online. inventory is not that big, leading to lower bond yields. futures, off session highs. crude is rolling over. unbelievable historic moves in

the oil market, the likes of which i have never seen. you have to go all the way back to 1991 for that. brent crude plunging 31% to $31 a barrel. goldman sachs could also fall as low as 20. joining me from the phone -- joining me on the phone from denver is tom petri. did you ever think you would see these kinds of moves again? tom: well, having lived through 1986, yes, i knew it was possible. frankly, the reason for it, a bit of a surprise, the speed of the diminishment of cooperation between saudi arabia and russia is noteworthy. long-term, we knew it was probably not sustainable, but to have it break out the way it did was noteworthy. i think the saudi reaction to the noncooperation by russia is at the heart of the matter. alix: and there are so many

different pieces. let's focus on what it means with russia and saudi arabia. with your decades of experience. do you have a read on what the angle is for russia or the saudis? in thee first time back thanks giving surprise, the goal when they were for operating was too -- when they were cooperating was to bend the supply curve. that is the one comment element -- the one common element here. monthsen they spent six figuring out how they were going to do it. this time they are doing it by having their former relationship fall apart. reactingthe saudis somewhat recklessly would be one term. powerfully toting drive the price lower. the key thing here is, i really believe that there is a

misunderstanding of how quickly and easily the u.s. went from 10 million barrels a day to 12.5 million. similarly, in the context of what has just happened, i think self correction will kick in, and we will be back testing somewhere in the 11 million barrel range, i suspect, if this plays out the way it looks like it is going to. that is a pretty powerful -- that is a bigger cut than russia was willing to weigh in for. i think russia has decided, why not try to bend the supply curve again. the long-term prospects are not good for them, but in the near term, the shock effect will probably be helpful. alix: in terms of the saudis for the moment, because it depends on how quickly they can ramp up, they had issues ramping up to 12 million barrels of oil a day. best estimate for what they can really do on a

sustainable basis? tom: i think you have put your finger on it. thanpect doing much more 11 is going to be a challenge. when they reach beyond 11, the sustainability of what they would be doing comes into question. i think you will see that pattern of trying to go to inventories, and frankly, they do not want to go too long and demonstrate that the produce ability of the old 12.5 million is there. alix: how long do you think they are willing to take this kind of pain? on the breakeven level they might sustain 40 for a while. but on a fiscal level, vladimir putin is getting -- putting the squeeze on him. tom: i agree. i don't think they are dealing with sustainable strength. alix: how long can they take it? tom: you know, i think the bulk

of this year, they could probably do it. i would be very surprised if they closed the year with the same attitude as they demonstrated this weekend. alix: if they can sustain this for a whole year, looking between 30 and 40 for oil prices, what happens to u.s. shale? tom: we roll over. 12.5 becomes, as i say, the tests of 11 and maybe the expectation of lower than that. so a lot of people heard from companies, we can do 50 and do fine. some even asserted we can do 40 and do fine on new things for drilling. those are the rare cases in my view. 55 to 60 is a workable proposition for the overall shale industry in north america. this will be a real year of testing if in fact

that is the case. i do not think either saudi or russia will want to go any longer than the fall of this year alix: when you look at u.s. shale, there is a distinction between those who can operate a under 30,reakevens for example. there is a distinction of they needed a lot of cash and funding to keep the wells going. who are well-positioned for the former, and who are not? who will be heard in terms of their cash flows? , is what i feel like it is going to be. tom: there is another dimension to it. wereajor companies really behind the curve on the shale revolution over the last eight or 10 years. this is their opportunity to step in and be a consolidator. i would expect that may well become one of the defining

characteristics of 2020. the: do they even have power for that? tom: they do. the major integrative companies, there is a downstream margin as well. so their ability and their upancial wherewithal to step is there. i think we will see some of that during the course of this year. alix: the of her conversation with big oil -- the other conversation with big oil, they live and die by dividends and buybacks. the concern with exxon and bp is if you do not have enough free cash flow positive is that you will not be able to pay dividends, forget buybacks. information on that? tom: if we end up having to sustain these kinds of , ititions all of this year would surprise me to see a

redefinition of dividends, but i don't think it will happen in the next quarter or two. i think it would be more of late this year decision. >> we are not there yet. to wrap it up here, we went through this in 2014. the beginning of 2015. it did not work. cut, they wanted to take out shale producers and shale producers got more efficient and paid off their debt, they got more productive. is this the same or different? tom: there are important differences. this is not coordinated between saudi and russia. the differences between the two are likely to become more prominent, i would say, by mid this year. and so how it plays out is, i don't think we can take -- i don't think we expect it to play out as the same way as it did

last time. one of these two will cry uncle. i don't know which it will be, but i think the sustainability of the situation is debatable in both cases. alix: this is the last question, tom. best guess on where the bottom is at this point? tonka can we test below 30? sure. -- tom: can we test below 30? sure. if we go below where we are now, i think it will be a very brief time, a relatively brief time. alix: tom, thank you so much. tom petri, great to get your perspective. still with me is kristina hooper of invesco. the laydown is similar to what you were saying. it has to be bad for a long amount of time for things to materially change. where do you find the value of? where are you sharpening your pencils? kristina: i would point

specifically to china. china is on the others of this. certainly that is what the data seems to suggest that we are getting from u.s. companies. starbucks has reopened a vast number of their stores in china. we have seen toyota reopen all its plants in china. so that suggests that it is improving. we are certainly getting that from the infection rates as well, as they have been declining. this is all good news and suggests that china is poised to benefit from the double whammy that we saw over the weekend in terms of lower oil prices. place. is an attractive also, typically, we see u.s. quasi-toas part of a safety. so within the risk asset space, a move to the stronger growth names within the equity space

are the ones that are most fundamentally sound. what gina was talking about. so i think those are both areas -- i think china right now is attractive. aroundarpening my pencil u.s., but i think there will be opportunities there. hard to call it a bottom. but this seems to have a very panicked feel to it, where a lot of mispricing often occurs. alix: when you say those companies are financially sound in the u.s., what are those now? ,e are in a changing landscape and if it changes the global growth profile, how do you know? kristina: a lot of the secular growth names are still seeing good earnings and revenue growth, so many of what we would call growth companies -- certainly gina talked about health care -- i would add a big

focus on tech, a lot of really attractive large-cap tech names that are delivering and should benefit. we have to think about what could benefit from this coronavirus outbreak. some of the tech companies are certainly going to benefit from that, and health care, of course. alix: one last question. do you need to hedge risk in treasuries, as in now you're taking up so much duration risk? is there a way to offset that? kristina: certainly there is the opportunity and there should always be an allocation to alternatives. for the real estate, the goals. all of those things that help to lower volatility in difficult times. but it can be as simple as focusing on the lower volatility factor within equities. that certainly can tamp down on what we are seeing in portfolios because keep in mind investors have a long-term time horizon.

so much of the volatility they are seeing today, if they are paying attention to it, in a few months, if they open up their statements, they might not even realize that it happened. that is an important point to stress. many people -- many people got out of the markets in the financial crisis and could never figure out a good entry point back in rather than just staying in, riding it out. be, thewhere we should strategic focus. but quite often we are focused on the tactical even though we have good time horizons. alix: kristina hooper speaking with me. we want to give you an update of what is making headlines outside the business world. viviana hurtado has first word news. viviana: we begin with the coronavirus. it is now bigger and south korea. italian authorities say -- italy is now bigger than south korea. say -- casesties

of the virus have jumped to 999. princesss., the grand cruise ship will dock in oakland, california. several thousand people will be quarantined. the ship has at least 20 cases of coronavirus. the trump administration is drafting economic measures to combat the fallout from coronavirus. bloomberg has learned whether provisions could be a temporary expansion of paid sick leave per there could also be help from companies facing disruption -- for companies facing disruption. we end with joe biden, picking up endorsements from two u.s. senators who ran from president. cory booker announced his backing after kamala harris says she will back biden for the democratic nomination. global news 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in i'm than 120 countries, viviana hurtado. this is bloomberg. alix: coming up, wall street

feeling the pain from virus fears. more on that next. you have a day where the credit market fear gauge -- the most since the lehman collapse and the fed expands its repo market. this is bloomberg. ♪

viviana: coming up in the next hour, joyce chang, j.p. morgan corporate investment bank chair of global research. alix: we have a special focus

now on the coronavirus hitting wall street. i guess joins us now. kristina hooper of invesco is still with me. kind ofyou have this volatility, it is not always good for the banks. everyone think that trading volumes are up, it must be a heyday, but people get scared in this kind of market. the vix is higher than it was in early 2018 and remember, right after that period, bank earnings were severely hit because hedge funds were taking down leverage and they were really concerned about the wild price swings. let alone what is happening with the federal reserve and interest rates. the credit market will seize eared we already see the cdx index for ig blowing out. so for people that think that this might be an opportunity, it is a tough one when you are saying that capital markets will seize up. banks are looking for opportunities right now.

bankers are creative. with that said, it is a turbulent time and it is something that is spooking a lot of the clients. so how they make this -- make money in this kind of environment will be a test. alix: what do you think about banks? coming undery are pressure. we have other factors impacting individual banks, which we saw last week was jamie dimon having this emergency surgery. and a lot of other factors are at play. there is the potential for greater regulation, although in the past week that seems to have died down. with the change in the democratic landscape. but that all plays a role in putting more pressure on banks. another point is that banking has moved outside the actual banks, and how will the interest rate moves impact those firms? we are seeing a lot of distressed companies saying they are ready to dive into this.

the last time we did that around 2015 they got burned by a lot of their -- a lot of that. they will be put to the test, and the lack of regulation will also be the focus. alix: we have seen some companies not being able to offload their books, but they are already sitting on some bad stuff. you had the height and energy market -- the high-end energy market. sonali: he already saw at the they hung last year with bad loans. what happens now? will they be willing to extend credit in this kind of market? you have to make money somehow. alix: have the 10-year yield at 50 basis points. so if the fed -- morgan stanley just up there call for 75 basis points. if that happens, what does that do? does it do anything? kristina: it certainly

helps consumers if you see a fall in mortgage rates. consumers of the biggest beneficiary. but we need to see more to see risk-taking on the part of businesses, on the part of banks, and we saw the fed cut the rate paid on excess reserves, trying to push lending. but i think we will need to see more. from my perspective, the only entity there really has shown a willingness's in thick global financial crisis to provide enough stimulus are central banks. but of course the effectiveness of what they are providing is in question. they havees on and as become more accommodative. so i would argue that we are at this point now where we need to see fiscal stimulus come from government, and certainly there are pockets of that. china, no italy. simulated to see

fiscal stimulus coming from central banks. by that i mean something like helicopter money, which i do believe is going to be justdered going forward, because central banks are getting desperate. was just ancept experimental idea before it was deployed in any meaningful way during the global financial crisis. and i think these crises push central banks to more experimental monetary policy. i could see the future being something like helicopter money, especially for a central bank like the ecb. alix: and for the u.s., you can now borrow in the u.s. for 32 years at 80 basis points. thank you very much. i appreciate your joining me on this day. coming up, we have futures sinking, yield dropping below 1%. 10-year, 40 basis points p dramatic action coming up next if you're heading out,

jumping into your car, tune into bloomberg radio. heard across the u.s.. this is bloomberg. ♪

how the scope time now for traders take. about traderstalk take. buying treasuries is the mode of the day. other safeterms of southe is as, aussie dollar yen better gauge of where sentiment is. you are blowing through four standard deviations are this does not happen very often. the last time this happened was the christmas eve selloff of 2018. the last time you saw four standard deviations was the brexit story in 2017. in june of 2016 and the end of december of 2018, the s&p may be

off to percent, 3%. this morning, as you know, with the rise of 7% or so maybe this morning, we will find out more later there are gauges where this seems very panicky, and other gauges in the s&p 500 where it is different than previous years. alix: that is a fair point. perspective heading into the trading day, taylor riggs, thanks very much. coming up on the program, joyce chang, a.p. morgan corporate investment bank chair of global research will be joining us. indicator today is going to be the spy that ends up tracking the equity index at the close right now, and we are looking at down about 6%. this is bloomberg. ♪

♪ >> welcome to bloomberg daybreak

on this monday. i am alex fields. here is everything you need to now. in my 25 years of watching the oil markets i have not seen such a dramatic reversal in policy. bux oil prices dropping after saudi arabia declares a oil war. we have 20 shocks. at the same time we have demand destruction, we have producers deciding to put ample amounts of oil in the market. goldman sachs oil could drop .nto the 20's low prices reverberate through the credit markets. towe are continuing recommend that all countries make containment to their highest priority. alix: italy quarantined one quarter of its population in the area around malan. >> -- around malan.

-- around milan. thehe red zone is most of most productive parts of the country. alix: top economic officials approved italy's spending plans. this comes as the u.k. is set to announce its budget this week. the top administration is considering stimulus. to throw 300,ant $400 billion to every american. alix: it is a not enough. -- it is not enough. every yield curve in the u.s. under 1% this morning. we are down 42 basis points low 1% for the first time. blowingon friday it was through three standard deviations. my mouth does not go that far.

i cannot count the number of standard deviations. >> that is the set up for your morning. it will be a difficult trading day for any holders of asset class. it might feel like 2008. the question we will answer in the next hour is is it 2008 and if it is not where are the dislocations in the market. if you're like me, you barely slept, you are checking your phone every couple minutes. spy, take a look at the that is up by 6%. you can get an idea of where we will open up in the market in an hour. a huge move to the upside. a flattening like none i have ever seen before. at 36 basisyield is points. crude is getting completely whacked. soment to get your take on of the big guys like microsoft, apple, amazon, and facebook.

if you want to take a look at where we will open up in an hour and a half, it could get ugly. the best guess with these stocks katien five or 7% stockton joins us now on the phone. or 7%. katie stockton joins us now on the phone. what are you looking for today, katie? >> it is best to do nothing in reaction to them. like we have already seen they are emotionally charged and obviously have the potential to become a site -- selling climax. we do not want to step in front of it until we get some uptick in momentum because there are a lot of breakdowns out there. forsaw the s&p 500 index one confirm a breakdown last friday around 2990. targeted next support,

which is just below 2970. that would be a very natural place for the index to find support. these levels unfortunately do importance on of an intraday basis. they are important on a closing basis or on a weekly closing basis. intraday, we are on our own. atx: when you take a look treasuries, the movement we have doesn'tandard deviation encapsulate the movement we have seen in the 30 year, do you have a sense technically on where we could find a bottom? last week it was breaking below 1% and now all of a sudden we are at 44 -- 84 basis points on the 30 year. >> it is very difficult. i was struggling with the same

question myself last night having seen the breakdown. i look specifically at the 10 year treasury yields. they have taken out the bottom boundary. we are in essentially uncharted territory. without support we cannot gauge downside risk except to you measured called a move. unfortunately all of those are in negative territory for yields. we have no guidance unfortunately as i see it. what is the best indicator than to be looking at, katie, as we are in this unchartered territory? >> i tend to look at momentum. two over splitve streams. it is when we do not have a reaction to those that we have a problem and that is where we

find ourselves. we have to hold to short-term momentum to have some kind of turnaround indicated. anything that is moving average base finally starting to stabilize. starts to flatten, the turnities -- i expected to around the short term. those events that naturally occur near important support levels such as a matter -- it is a matter of identifying support and waiting for them momentum to pick up. alix: great technical set up. now let's get to a longer-term fundamental basis. jp morgan corporate and investment bank, global wealth management head, ladies, thanks for joining me. is it 2008? is it 2001? >> it is not 2000 date because

it is not a global -- it is not 2008. it does not take much to make the size medic moves in the market. seismaticake these moves in the market. of both.ombination taking a look at the u.s. treasury market, we think 80% to 90% of that is a high -- trading. market liquidity has dropped since 2008 as you have had lots of the shock absorbers move, the inventories are not being held and the shift into electronic trading. alix: lara, what do you think? a 2008 situation. obviously fear is driving the market. both seem to be uncertainties that are temporary. we do not know how long it will

take to get clarity, but in the second half of the year the economic backdrop looks quite good. if you look at the most recent jobs report, consumer confidence is still strong. fear is clearly there. one measure we look at, if you 25, banks areer not tightening lending standards. over 12 months, we see equities returning 20%. usually things turn out ok but it could take some time. alix: the narrative in the credit market is "are we seeing the dollar funding stress?" seemed like the market was absorbing it ok. then you have investment grade blowing out. you had the yield started thing to widen as well. that is where the transmission mechanism could come to bear.

is that a good negative? joyce: we have had so much issuance in the high-grade market that is five times bigger than what it had been a year ago , but if you look at the actual rollover cost and the default risk, it is still pretty manageable this because these companies were able to come at such low yield. you haven't had the market completely closed. this is much more about liquidity. we have seen an increase in the fallen angels and there will be a greater focus on that sector of the markets. treasury seeing the market price and that worst-case scenario ella tips what we are seeing on the equity market. what we are seeing on the long end could come back at on the shorter end we are pricing in the scenario that the fed will continue supporting the market. that is something we buy into. we think the fed will continue to provide support as we face the coronavirus, dropping oil

prices, and try to ensure we don't end up in the worst case scenario. alix: if that is all the case, then what do you need to do? are you hiding in cash until you feel comfortable buying in? what is the best idea? , stay invested, even though it is really hard. you have to have a strong stomach. alix: do not sell here. >> focus on a more secular stories, opportunities in internet companies. they are well exposed to even some of the stay-at-home trends. searches, online shopping. that is a scenario we like. another area would be five g infrastructure. we still see investments going on there. really focusing on those secular stories.

emerging markets, we have seen coronavirus uncertainty fade there. the situation is starting to improve. earnings potential looks good and developed markets. joyce: i think it is too early to jump back in right now. asia took eight weeks to get through the quarantine. and we are just starting that here. we are most worried about those markets that have been at the peak of valuation before this. and number of markets really had -- had been i agree lagging. i agree there are parts of the emerging markets that look interesting. of playshave a number in the marketplace that have -- that makes sense in particular sectors where we put more value. i think it is early though. just had a quarantine announced in italy.

the question is how many other countries? dox: how much duration risk you think is in the market right now? joyce: i think there is real demand for duration now from the banks. that is not going to change quickly. everyone will look at what the central banks do. we would agree. we think the fed is going to continue to do what it needs to do. we can see other central banks coming in to support the market like the ecb. we will continue to see that support on the monetary side. alix: we will break down the fiscal stimulus in a second. joyce and lara, thanks so much. coming up, we have brent funding -- afterussia.er oil this is bloomberg.

♪

alix: while heading for its biggest drop since the gulf war in 1991. punching 31% after the break plunging 31% after the break down in talks between saudi arabia and russia. deal ends inc april -- sarah emerson joins me. your take away and how oil moves forward from here? sarah: my takeaway is the

surprise from last week is not the russian decision but the saudi decision. they gave russia a quid pro quo. russia said no. saudi said "we are going to show you." i think we are headed lawyer -- lower than today's price. right now the price is reacting to things that are in the works -- more run -- more russian crude, more saudi crude. as inventories grow and they try to sell this crude into a weak demand, those inventories will encourage lower prices. alix: current month prices will -- they will put oil in the storage to incentivize them to sell it later. how deep could that be? in thewe have had times password has been a couple of dollars a month. you could have a fairly deep and

-- a fairly deep tangoe. those customers are going to say "this is a great price, i'm going to start filling up my tank." the saudi's will put their oil -- crude in tinkers and to get closer to markets. lower, i dogo a lot not want you to put a bit -- a bottom on it, but are we talking about the 20's? the teens? what is a realistic marginal cost per barrel? 20ah: the typical price was 228 dollars in the 80's. with inflation we are talking something closer to 30 or 35. we could push below 30 just to

get a sense of the market reaction. we are looking for countervailing factors. what could boost the price or stop the decline? those are things we will have to keep an eye out for. alix: twins are that question, it seems the only answer is going to be for -- to answer that question, it seems the only answer is going to be -- what do you think? sarah: in the second half we will have a business demand pickup. that will be a late recovery. factor there is another to take into consideration. this price is weak. it is not just about saudi arabia and russia. a lot of other countries well feel the pain of this. if that happens there will be a real clamor to get back to the negotiating table. it is one thing for the saudi's to ask the russians to play ball. it is another thing if 20 -- 20

countries are calling them. i wonder if one of the things that will happen is if the enough,re law -- low this could trigger a return to the negotiating table sometime in the second quarter. alix: to wrap up the conversation, it is not just opec plus that is feeling the pain. this will decimate parts of the u.s. oil into shale industry that are already highly levered and to not have easy access to cash flow. no matter how low their drilling costs are, if they cannot keep drilling they are in a world of hurt. what could happen? sarah: i might add that right now the trump administration in selling's --f selling several million barrels of crude. what we have seen over the last debt -- ao is a

significant consolidation. they have been buying up weaker companies that have last -- less access to capital. we will have some bankruptcy. the bigger players will get bigger. it is a manufacturing industry, so it will take a hit. shale will definitely go down this year, but it will consolidate probably get again into a stronger industry as it did back in 1516. alix: when we do have a recovery , what kind of reshape are we looking out when it comes to oil prices? at some point we are going to hit a supply gap, right? when will it hit? sarah: it will take a long time. they're covering in demand would have to be dramatic. with the coronavirus, we know there is some pent up demand so we could have some significant bounceback, but will there be some supply response as well? slows downall --

from brazil, if russia can only 400,00 or 300 instead of all of that could help bring the price back out, but right now it does not look good because you're building inventory. that inventory will be on the market for several months even after demand recovers. alix: thank you. great perspective. here in new york is joyce and lara. you are nodding during the interview. it seems it was adding up to what you were thinking too. had one point one million barrels in the first quarter. it will be a long time before you see something reshape and it will not rebound back to where it was. will be more of a w? aeryone thought it would be first quarter event and the second quarter would come back. you're really talking about the second half of the year then the

second -- than the second quarter. laura: we could see a lot more volatility. by the end of the year we are hoping to be -- to have the market back in balance. that demand should hopefully be coming back online and hopefully by then we get some production cuts agreed to. it is really just getting supply and demand in balance but it will take time. it could get worse before it gets better. alix: if this conversation were happening's desha happening six years ago, it would be like a "my god, the s&p cannot find a bottom with that." it is different now. is there a real trickle-down effect or can we have a world where the s&p find some stability but oil keeps rolling over? joyce: you will have the volatility here to stay until

you have some preconditions that are filled. one of them really is the sense aat the coronavirus, there is strategy globally, the where the pandemic fears are not as strong. there can be moments where it is disconnected, but right now it seems like you're getting more correlations across the markets. that is just the trend we are seeing. >> no one can win and then suddenly you're selling off -- sellingto pay off off anything to pay off everything. coming up next. this is bloomberg. ♪

alix: time now to check in on the morning biggest movers. petroleumidental sinking more than 35% in premarket as oil prices sank the

largest amount since 1991. i cannot tell you how detrimental this can be to companies like occidental if they end up cutting it to pay off debt. at $.18.e was trading banks are rolling over as a whole yield curve is under 1%. how do you make money when you have a 45 basis point decline? wells fargo getting hit as well. you had a consumer issue and any freeze up issue there well -- coming up, driving into diving toward zero, the yield curve falling below 1%. what to expect from the fed and can they even do anything? this is bloomberg. ♪

beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity.

every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. alix: this is "bloomberg daybreak." i am alix steel. doubt it will be a tough day with in the market good s&p futures are closed. they went down 5%. you can trade above that, but

you cannot trade below that. we will not know where they are going until they open in about an hour. european stocks are down. microsoft and apple are also down between 5% and 7%. european bank stocks getting hit the hardest. you can surmise we are looking at somewhere between a 6% and 7% loss for the s&p when we open up if it winds up tracking europe and the spy. historical moves within the bond market good the tenure german bund yield down 14 basis points. -85 basis points. in thedouble what we see rates from the ecb. it is a similar story in the u.s. the fed increasing their overnight repo operations today to help smooth and grease the wheels. asare seeing a weaker dollar yen is outperforming at the safe haven currency.

the big move is in the 30 year. 82 basis points. an unbelievable move. i do not know what kind of standard deviation that is but it is norma's. gold is flat. killed, down 23% after we see an oversupply out of the market. all of this wrapping into what central banks will do. could you wind up seeing the fed boosting temporary cash? bridgewater's ray dalio did in economic will the require a coordinated response. policy isile fiscal controversial, it is the best iticy with other forms of -- is also policy we all need to get used to they could is the only way economic policymakers able to deal with economic rownturn in this era of nea

zero interest rates." lara and joyce are still with me. do you agree? joyce: we will see correlated if not coordinated moves. we have 15 out of 22 markets easing. we also think the fed and the bank of england will do more this month. they will go beyond easing. they will talk about credit easing, yield curve control, and we saw from the boston fit statement on whether they might expand the kind of purchases they are willing to do. laura: we definitely see the potential for the fed to do more . i think they're in a difficult situation because we want to look at the economic data and see what the effects are of the virus. that is difficult to determine because the situation is so uncertain. also we agree we will see other central banks take action as well to support the global economy and i do agree we will see fiscal stimulus play a role

as well. as rates go so low there is only so much monetary easing can do. rick rosengren talking on friday saying a broader purchase of securities would mean changing the federal reserve act in congress. how does that get done? they're all of these pieces that could wind up crimping what they can do. morgan stanley is calling for 75 basis points of cats. then what? you're at zero and then what does that do? joyce: i think they will talk about more credit easing and more support for small and medium enterprises in particular. europe will have to address that issue for countries like italy. that credit easing is one piece to look at. yield curve control, when you try to target the interest rate is something japan has done and will come for more discussion as well. alix: and you have cap a steeper curve? joyce: that is what they are

trying to do but i think it is targeting the long-term interest rates, not just the bank but it will be a problem for the insurance companies when you look at how negative yields are going. laura: i would add that over the next two weeks we will get greater clarity about the containment of the coronavirus in the developed economies. i think there is a lot of moving pieces. it will take some time, but if we get clarity, we could see less be are in the market. we could see the situation reverse rather quickly. that is another variable we have to keep in mind. we do not know how long-lasting this will be so we do not know the extent of the move the fed will have to make. it is hard to gauge what the economic impact will be. joyce: even before last night's move, we already had a contraction in global gdp in our forecast. that is the first time short of a recession in 50 years we have a contraction for the first quarter.

we see a rebound, but is that rebound delayed until the second half of the year? china will contract for percent this year. is the contraction in europe going to be worse? china was unique because they quarantined 77% of gdp. what other country can do that? alix: none. do they then take it back? i can see a world where the fiscal and monetary stimulus in emerging markets days, but in terms of developed markets, if you cut another 35 basis points from the fed, if everything is ok and we get a w shaped recovery, do we then roll it back? joyce: it is hard to say you'll be able to move very quickly in this kind of environment. you make those decisions and they have meaningful -- it is meaningful for a while. we have now been talking about market movers in the period of hours and days that we used have play out over much longer time.

given that you often have seen from the point of containment about an eight week period, .here is still a lot to watch laura: i do not think it is something they will walk back right away. there are a lot of other sources of volatility. i do not see them walking back. alix: no doubt if you take just the u.s., it is small caps, small businesses will get hurt. what should the government do to support them? is it a payroll tax? helping fund them while they're trying to pay off debt? what will be the thing? joyce: the first step will be to help them with the funding. you have seen what china has done. they have been saying there is forbearance on nonperforming loans. the first step will be the funding markets, and will be on nonperforming loans.

like italy saying we will not count this toward the official numbers right now. i think that is the first step. laura: i would agree. the funding and the finance side seems to be the most immediate step to take. also other government spending on the infrastructure side and other areas that will give a broader boost to the global economy. alix: if the story was the consumer is holding up the u.s. economy, how does the consumer do? laura: we still see the consumer doing well. consumer confidence is still strong. there has been talk about the switch from brick-and-mortar stores to online retail. we are seeing some of that play out. obviously some of the travel related areas are challenged. we could see shifts in consumer spending. right now we do not see the fear getting to the point consumers are not spending. we are not there yet, but it is something we are monitoring. we're starting to see companies find it difficult to make

investments in new projects in this kind of environment. had beene cap ex something into client well before coronavirus. related, restaurants and other entertainment, and other percent, then you put in movie theaters. last year we had u.s. growth in the first quarter quarter only .5%. alix: you think the airline industry is like the car industry in 2008? joyce: the airline industry and the cruise industry have been some of the hardest hit. it is the duration of this. everything that is now in march and april, they do extended further than that. alix: as we round out our conversation for today, if you have a client calling and saying at some point i will want to put money to work, where do you need to start sketching out your list? here are areas where we feel at some point will offer some good

value. we definitely prefer stocks over bonds. stocks are key relative to bound. emerging markets is our preferred area. at the u.s. sides, our top sector are consumer services. that is where we are focused in terms of the best opportunities. joyce: when i look at the market positioning in u.s. equities, it is not as bad as it was in december 2018. i wonder if equities will come back first and you will look at some of these value centers in particular. on the credit markets there are a few things we've always looked at, like emerging markets credit, north of 450 basis points is something that is attractive. we are not there yet, but we are north of 400 today. alix: and the dollar is weaker. thank you very much. a tough day. laura kane and joyce chang, thank you. we want to give you an update on what is making headlines outside

the business world. viviana: we begin with coronavirus. spain confirming nearly 1000 coronavirus cases. italy's death toll is now bigger than south korea. the town authorities say 366 people have died. there are now more than 7300 confirmed cases. wille u.s., a cruise ship dock in oakland, california. the ship has at least 20 cases of coronavirus. the trump administration is drafting economic measures to combat the fallout from coronavirus. bloomberg has learned one provision could be a temporary expansion of paid sick leave. there can also be help for companies facing disruption. the package has not yet been presented to president. we end with joe biden. he picked up endorsements from two senators who ran for president. today cory booker announcing his backing. harris --ter, la

today after the day after kamala harris announced her endorsement. 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. i'm viviana hurtado. this is bloomberg. alix: now want to get a check on updates to the market. taylor riggs has more. taylor: it does not look good right now. taking our cues overseas. china was off 3% to 4%. to 6%, with one index often percent. if we go to the global bond market, also taking our cues from overseas, the long end of the yield curve on the 10 and the 30 seeing the biggest move. the 10 year below .5%.

finally, if we flip up the board and look at a chart i am showing inside my terminal, the treasury market volatility is making all of the other asset look relatively muted. the move index spiking up. it means gold and vic's seeing less tightened -- less heightened volatility and fx volatility is muted good all of this on a relative basis. alix: thanks a much to bloombergs taylor riggs. coming up, oil taking its worst plunge since 1991. more and names getting hit. who can survive and who cannot? bloomberg users, check out gtv on your terminal. this is bloomberg. ♪

viviana: coming up later today on bloomberg markets, the iea executive director. ♪ viviana: you're watching "bloomberg daybreak." i'm viviana hurtado with your bloomberg business flash. with aeon agreeing to buy willis towers. that represents a 60% premium to willis towers price on saturday. the deal was announced after previous talks between the insurers fell apart. now to the u.s. willing to be flexible to china with the new trade agreement. beijing promising to increase imports of american goods. the u.s. is telling china that due to the impact of the

coronavirus it can start off slowly. in return, the chinese must ensure that when production returns to full strength exports to the u.s. do not soar. u.s. shale producers are beginning to react to the historic oil price crash. diamondback energy cutting a cutback in capital spending. the company will cut the number of cruise that will work on oil that -- number of crews will work on oil well.s that is your bloomberg business flash. alix: time for bottom line, where we focus on companies worth watching. today we will continue to look at oil companies. joining me is janine wai. if we cannot find a bottom in crude, what happens to the energy space? anine: they are both bad. with the opec plus agreement falling apart, we think the floor on oil prices has been

removed. what that means for the stocks, we think all eyes are on what the actual elasticity of u.s. shale is. let's not sugarcoat it. at these prices the sector is challenged. the return of cash flow narrative evaporates. in our view, the cure for lower oil prices is lower oil prices and we maintain our view that a total washout of the sector is the catalyst. 35, 25,that happens at to be determined. with opec plus dissolving, that is an accelerant. for the u.s. emp, there are a lot of different things that mean whether they can survive or not. whether operating costs are, how much debt they have, whether they have to refinance. if you wrap that into a cake, who is ok? jeanine: a lot of questions. we can start with the balance sheet. we ran an analysis of $40 flat

oil for two years. our conclusion is that for the large caps, it is not her out but it is not terrible. they can survive. on average the medium is not butbic -- not heroic tenable. in terms of the hedges you spoke of, people love hedges on the way down, hate them on the way up. where in a lovefest and calling it a hedge fast. in terms of the high-quality names that are most hedged, we site parsley and has. -- and hess. alix: who cannot make it? who does not have the ability? we think the more marginal balance sheets are in trouble.

when we ran our analysis, we highlight companies that have the highest leverage. we think companies have options, which is to continue to cut the cap ex and narrow it out. alix: i am assuming the pliva it -- the private players, what is the ability for them to survive? jeanine: very tough environment for those folks. the silver lining is that what is bad for the micro is good for the macro. we think there will be steep declines in the privates. the privates account for over 3 million barrels of production. alix: hence if they get wiped out, eventually of a better macro environment. i want to wrap it up with exxon and chevron. exxon were already free cash flow positive. now their dividend yield is 7.3%. the market hated their investor day last week. what is the stress they will

feel? jeanine: we think exxon is not immune to the stress like our other large cap emt. exxons leverage increases to about 2.4 times by the end of 2021. that is the standard level as the median on the e&p side, which is amazing. and a badxxon environment will start pacing cap ex. in our view, the permian is where the growth is coming from. they can also push back some of and there's lng, chemicals banned in asia we think they can push off. alix: went does the dividend/by backstory become a risk for these companies whether you are exxon, chevron, or the smaller guys? jeanine: we think there is still time because the balance sheets are strong. -- itt $40 for two years

is not ideal to take the dividends out of the balance sheet but they have the capacity to do that. the other levers they can pull is to take down cap ex, which will help provide the cash for the dividends. alix: the last question is if we get what is bad for the micro is good for the macro, what kind of recovery do we get? jeanine: a good question. i would love to think about a recovery right now. it is too early to tell. we will continue to see headlines this week on what is going on with opec plus. the coronavirus is a huge question mark in terms of the timing. it is a question of how those things progress. clearly it will be challenging for the equities. alix: thank you so much. i appreciate it. jeanine wai of barclays. s&p futures dropping triggering a circuit breaker after the open. we watch the support levels you need to be aware of.

if you're jumping in your car, tune into bloomberg radio heard across the u.s. on sirius xm channel 119 and the bloomberg business app. this is bloomberg. ♪

alix: time for technically speaking. futures are shot. how we open will be dicey. joining me with the breakdown is bloombergs abigail doolittle. if we look at the under indices, we are looking at maybe five to 7%. what are some levels? abigail: we are looking a weekly chart. that is the 40 week moving average. the yellow line is the 100 week moving average. you can see futures this morning breaking below it. if the declines are more than 5%, we will really go below it. in 2016 and 2018, you can see when the 100 week moving average was broken. that support failed. we went right down to the 200 week moving average. i can make the case the s&p 500

on this morning's decline is confirmed for 2300. pretty bearish action ahead. alix: a fair point. talk about bearish action. it is also about oil. we have been having a hard time finding a bottom in oil. what you see a chart level? abigail: each of these bars represents a quarter. take a look at between 1980 and where oil was in 2000. $20 a barrel. as low as 10, up to 30. this range we have had out of the financial crisis between 100 and 30, you can see we are well down into the range. the bottom of the range is below 20. alix: bloombergs abigail doolittle was not very happy charts for you on this monday. breaking news for you. twitter will be appointing three

new directors to its board. three new boards appointed to twitter. that news breaking moments ago. that does it for me at "bloomberg daybreak: americas." coming up on the open with jonathan ferro, priya misra and calvasina, atori mohamed el-erian. in the nextng half-hour when futures will open and get some clarity on where we will trade today. yields historically moving lower. the yield curve in the u.s. below 1% as crude continues to rollover. this is bloomberg. ♪ when you move homes, you move more than just yourself.

that's why xfinity has made taking your internet and tv with you a breeze. really? yup. you can transfer your service online in about a minute. you can do that? yeah. and with two-hour service appointment windows, it's all on your schedule. awesome. so while moving may still come with its share of headaches...

no kidding. we're doing all we can to make moving simple, easy, awesome. go to xfinity.com/moving to get started. it's more than just fast. it keeps all your devices running smoothly. with built-in security that protects your kids... ...no matter what they're up to. it protects your info... ...and gives you 24/7 peace of mind... ...that if it's connected, it's protected. even that that pet-camera thingy. [ whines ] can your internet do that? xfinity xfi can because it's... ...simple, easy, awesome. [ barking ] jonathan: from new york city for our audience worldwide. i'm jonathan ferro. "the countdown to the open" starts right now. ♪

alix: comp -- jonathan: stocks plunging, u.s. equity futures limited. the entire treasury curve inside 1%. 30 minutes until the opening bell. here is your brutal monday morning price action. equity futures limit down on the s&p 500. ,n the bond market, huge bit 0.24% on the 10 year. your s&p 500 etf in early trading down almost 7%. let's get straight to the big issue. a new shop for global mark -- a new shock for global markets. >> i am worried. >> we do not know what is going on. >> it is a dark outlook. >> the coronavirus challenge. >> now we have an oil shock. >> there is a possibility of a recessio