for money states in the -- many states in the u.s. we need to focus on fiscal policy, monetary policy that would be welcome, progress in terms of health care policy being implemented, and providing results. romaine: we are just getting the closing bell here on the day. the s&p 500 around the 2750 the march 23 from low. you could call that a bull lot of ground to go until we get up to the record levels we were at in february. on the day we saw most of the strength coming out of what could be considered the offensive sacred -- sectors. energy was also higher.

sectorsre your main leading the rally today. we should mention this is unlimited volume as well. it is up 11%. in the case of the dow and s&p lower than it was a day ago. passover begins tonight. we might see limited trading. friday is a public holiday. monday there might be people off. jay powell is speaking, and that might provide some catalyst for market pricing. romaine: joining us is christina from invesco. ,hen you look at these rallies it is an encouraging sign, but

the market seems to be very focused on the virus data we are getting, the number of deaths and what is a decline in the number of new cases in certain regions. the market will start to focus on little less on the virus count, and focus more on the economic numbers, corporate profitability, the more traditional metrics, and is it going to matter knowing that we know it is going to be bad? kristina: that is the point you are making is right. it is going to be bad. the market is likely not to focus on it which is the right thing to do. the market should be looking ahead to when we could expect to see the be -- see the beginning of the rollback of the lockdown. that is why health statistics matter more than economic statistics. that will be true for the month of april and likely for the month of may or part of the month of may.

once we see the rollback of the lockdown, that is when economic activity, statistics are going to matter more. i can see that, but we are not sure how this reopening will take place. austria is doing it in phases, moving tentatively. want company executives offer insight into -- won't company executives offer insight on how they will bring workers back into the fold and start reopening? wouldn't that be market moving? kristina: it could be. we might hear from companies soon. this is new to many companies. unless they have had operations in china, this is a fairly new phenomenon. it might take a little time to formulate a plan. but you are right, that could be market moving. at the end of the day, health

statistics matter more. we know that this is going to be a slow rollback of the lockdown. gauge thent to different economic statistics once the rollback against. understanding economic activity is likely to be subdued for some time. the doesn't mean we won't get a v-shaped recovery, but it will be ugly. line,will be a meandering not one shooting straight up. there will be a lot of's execs here. i'm wondering about the -- a lot of zigzags here. i'm wondering about a lot of the discretionary spending that was sort of a big component of consumer spending. do you anticipate the companies that are in the business of the highly discretionary products will recover at least maybe sometime this year, or will it

take longer? recovery i expect a this year. might not happen until later. much of it is predicated on adequate fiscal support during the crisis. that is why we need to see us to did -- a significant extension of what we got in phase three in phase four. there is a significant cohort of american households that are very vulnerable. what we have seen from fed surveys, independent third-party surveys, there is a large cohort of americans that have little or no emergency savings. that doesn't matter much when unemployment is 3.5% and growth is solid, but it matters now. we need to continue to see the lifeline extended to them. that means cash payments. we have got the start of that.

let's hope it gets into their hands and it needs to be followed up with more. scarlet: i want to get your thoughts on the recovery in europe. we know that the e.u. finance ministers held this 16 hour emergency conference call and failed to come to any agreement on a rescue package of 500 billion euros. and christine lagarde has said members cannot avoid economic fallout if one suffers. trying to rally the troops and get them to act in unison. what does the recovery look like if they squabble and drag out the response to the crisis? i am optimistic the squabbling will be short-lived. there is some hope that will be the case. what kind oftate recovery europe sees, just as it will every economy.

so i would imagine that we will coming fromtimulus europe. if not, what we could see is the ecb step in. this might seem like an outlandish idea, but what we have seen time and time again is in an absence of fiscal stimulus from governments, central banks have stepped in. that was apparent during the global financial crisis. we could see it happen again. exploring anhe ecb experimental tool which could simulate fiscal stimulus. scarlet: relying on the central bank. the invesco chief global market strategist, thank you for your time. that does it for the closing bell. what did you miss is up next, where we will look at the impact

of the coronavirus on higher education. this is bloomberg. ♪ this is bloomberg. ♪

romaine: this is romaine bostick, alongside scarlet fu, joe weisenthal joining us later in the hour. scarlet: we are taking a look at how u.s. stocks close. we are at four-week eyes for the dow-- highs for the s&p,

and nasdaq. let's say on topic because president trump's top health advisers are developing criteria for reopening the economy safely. this is if trends continue to show improvement in the coronavirus outbreak. for more on how this is going to play out, let's bring in mario parker, bloomberg white house reporter. what can you tell us about what kind of medical criteria the health team has come up with? >> it is in the early stages of deliberation. what is remarkable so far is the fact that the white house is allowing the health experts to take the lead. they don't want to open -- they are eager to open things up but not prematurely. at this point the health team is taking the lead in terms of analyzing data.

parts of the country could be opened earlier. the hotspots, etc., and taking the lead from there. that is encouraging. for those of us that watch the briefings and follow what is going on in washington, having the health leading -- health experts leading is encouraging. do you get a sense that is going to hold, that we will see politics divorced from the final decision and that decision is going to be made with the health of the public in mind? of the present it -- the trump administration is things can change rapidly. the president is anxious to open the economy. it is instructive argument for reelection and it is something he is touting. on the other hand -- and is his strongest argument for reelection and it is something he has touted. we know dr. birx and dr. fauci,

some of the other members of the task force, met late into the night at the white house, sans political advisers. if we were to read the tea leaves, we would be able to say at least so far the health mines are the ones -- health minds are the ones leading. scarlet: the president is a big fan of having panels work together and empowering other groups to make decisions while he has the final say. if the health advisors are working out ways to open the economy safely with public health concerns in mind, is there any economic team the president is putting together to look into how we would deal with the details? mario: we know the president has

talked about a second coronavirus task force who would be tasked with the economy and how to get it back opened, what policies would help to spur the economy and what the logistics of reopening will look like. that is something that has been under consideration. yesterday the president kind of waffled on whether or not he would follow through. -- one: one thanked thing everyone agrees on, you will need some degree of testing to make sure people are not carrying around this virus or transmitting it. and businesses need to have access for personal protective equipment, to make sure customers who walked in the door are not going to be infected. does the white house have a plan for addressing that? mario: sure. that is the most critical. this is the key to everything,

testing and proliferation of widespread testing. so far we know there has been hiccups with ruling out testing, making it available. but the white house has been confident it can rule out more testing and we have seen more discussion in the briefings, president trump talking about rapid testing. as business leaders and trump administration allies pressed him, the administration to start to reopen the economy, testing is first and foremost. remember a couple of weeks ago president trump was talking about a system where he would designate cities or counties or states as high medium or low risk -- hi, medium or low risk. is that still part of the thinking? mario: not sure about that but the discussions now or possibly

sparselyelatively populated areas. governor is, their trying to boost testing, even though it doesn't look to be a hotspot in the vein of new york, new jersey or chicago. maybe the idea would be states like utah, places like iowa, nebraska, north dakota, those will be the places that would have guidelines in order for folks to get back to work. romaine: thank you. mario parker for the bloomberg houseomberg white reporter. we will talk about the credit market chaos and why that is presenting a once-in-a-lifetime opportunity for some money managers. this is bloomberg. ♪

democrats are proposing another round of economic stimulus with a price tag of $500 billion, double what the white house has been seeking. performers -- a former treasury secretary says assistance is needed. he spoke with david westin earlier. >> the whole need for response here is immediate. we shut the economy down, we need to make sure that these businesses are there when we open it back up. if we take too much time to get things perfect, which is my preference -- i would love to crossed, wewas

would love -- we would look back and regret it, because there would be so many failures, the length of the recovery, the recession has deepened. if half of the american workers are working in small businesses and we need them to go back to work with health conditions permitted. time is of the essence. the funds part -- put in the third bill were helpful but i didn't think it was adequate when you look at the number of businesses that are going to need help. i'm not surprised they are looking at providing more assistance. what i am trying to add into the thinking process and the comments i am making, when the green light comes, there has to be cash flow to reopen. there is going to be a need that continues the assistance longer than the health crisis, like there is going to need to be help for people with

unemployment, food stamps, snap and other kinds. other long is the economy is lagging behind because of the health care crisis -- as long as the economy is lagging behind because of the health care crisis. david: the government will have to borrow a lot of money. there will be a lot of issuance from the treasury. might that change the way issuance is done? should we reconsider and ultralong bond? some people have considered a war bond. should we be thinking about different issuance coming out of the treasury? >> we need to be open to using the whole yield curve to finance this huge increase in debt in the most efficient way possible. i have never been persuaded that the 50 year bond is likely to have the kind of deep market that could be relied on. this is a dangerous time to run

an experiment with a new concept. we have very deep, well-developed markets. we can go long and short. debt will for u.s. remain strong in the global economy we are in as long as it is clear we are responding to this crisis and we have the resilience to bounceback. the place where i am worried about the financial shortfall being crushing and without federal assistance, there will be terrible consequences is at the state and local level. they operate many of them with balanced budget requirements. if they can't fill the holes because of the sales tax revenue being off, gasoline tax revenues being off and income taxes being off and delayed, they will start cutting back on vital services and they will be canceling things like road programs. that will have macroeconomic

consequences. i have spent most of my career worrying and i continue to about the long-term sustainability of our deficit and our debt. i don't believe in this moment, if we are penny wise and pound foolish, it would be a good thing. takes. take what it the economic costs will be greater and the deficit will be greater. as for as financing, we need to be careful as treasury typically is in going into markets to make depthhat we maintain the and liquidity for what is a large increase in federal borrowing. we were listening to jack lew, the former treasury secretary speaking with david westin. let's turn to credit markets. a lot of chaos and some folks are finding opportunity. let's bring in catherine doherty

who covers this at bloomberg. explain what is going on. when you look at the credit markets, you're seeing this violation --issed misvaluation. what opportunity does that provide? >> everyone is looking for the opportunities no one else is or that are arriving just in time to put money to work. after the selloff last month we saw a number of funds go to investors asking for fresh capital. the reason is they are seeing high grade investment-grade debt that normally would be trading at much higher valuations come down. they are seeing this opportunity might not last long. they want to get in right away so that if this opportunity ends up rebounding and the prices

snap back to where they were before the selloff, they will have the opportunity to do so. some of the funds include highbridge capital, night had capital. are they all targeting struggling companies, distressed companies, ones that may not survive the epidemic, or are they going after healthy companies? what credit are they looking at? ,> it is not all distressed troubled situations. some of them are. but the ones these funds are looking at they would not have looked at before our high-yield investment-grade -- are high-yield investment-grade companies, fallen angels which have created forced selling or have run into new pressures with businesses being closed, that

have pushed prices down further. these investors bet normally look at lower prices are seeing new companies come in every day. analysts having to do work on new sectors they had not beforehand. reporter,essed but it i have had to look at an entirely different subset of companies and you conversation starting with these funds that are bringing in the capital to start looking at them as well. is -- : romaine: is this like mean reversion where people say, it will have to correct itself, or is there a deeper fundamental analysis going on? is the thing. the caution is how deep -- someone brought up to me and said we see that there is a fall, but how wide does this go?

if you are getting into situations you believe there is going to be a rebound, what will these companies look like two or three months from now? is the stress going to continue so much so the valuation stays lower? is it an immediate impact that remains? these are questions analysts are having to do. there is uncertainty because we have not had any comparisons for previous times that have caused disruption across all sectors. i guess these funds have some of them -- their work cut out for them. thank you so much, and stay safe. coming up we are talking about colleges in crisis. how the virus epidemic might be too much for some schools to overcome. this is bloomberg. ♪ rg. ♪ nowadays you do more from home than ever before.

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scarlet: the finances of some small u.s. colleges have big problems and the coronavirus makes it worse. work for -- our reporter writes about this and while some schools have managed to persevere, it is impossible to say how they will adapt to the latest hurdle. but it seems more likely than ever they will all clear it. let's be clear, these are the non-elite schools that are

facing the music. the likes of harvard and princeton with big endowments will be ok. having said that, the smaller schools that have lived on the edge financially for years, when you look at the financial metrics, what does it show about their distress? byi grouped these schools day's cash on hand which serves as a proxy for liquidity position. , 1000 orer schools 2000 students, the have operating revenue of less than $100 million. these schools are living on the edge and they rely on consistent istion, enrollment and it unclear if those trends are going to keep up going forward because all of a sudden you have a combination of remote learning demographicthe trends which are not favorable.

some of these companies you are writing about, they have debt outstanding, bonds outstanding. is the idea that they can't repay that existing debt, or they can't raise additional capital to keep it going? what is the issue? reporter: there is the idea of on thef defaulting fiscal bonds, or actually closing altogether. a few years ago i covered a school that defaulted and it is still up and running. just because you fail to pay your investors doesn't mean you have to close your doors. there is a correlation. you see some of these schools already, the small ones in oregon, a cornea college -- concordia college saying it has to close effective the end of this year. scarlet: you mentioned unfavorable demographic trends

and the coronavirus is accelerating that. they are closing classrooms and dorms, switching to online, banning campus tours for prospective students, canceled sports, but they still have to pay debt and salaries of teachers and staff and refunding room and board for students who are no longer on campus. talk a little bit about the landscape. we are coming to a critical point but a lot of these things were already issues that were are collating and came to a head now. exactly. from 2010 to 2018 the undergraduate population in general fell by more than one million people. that was a trend during the millennial generation, it was colleges could raise tuition as much as they wanted because there was so much demand, there was a large groundswell of high school seniors consistently

applying and trying to get college degrees. now you are seeing that fall back, and combination to the other trends you mentioned. just a general feeling student loans are not necessarily good to acquire. if you are not going to a good school, do you want to burden yourself for decades? all of this awareness is raising questions about the value proposition of a lot of the higher institution education out there. value isn't always about the dollar. sometimes it adds to the community. we have seen local governments trying to prop up universities and colleges in the past. we think that there are minas abilities that are willing to do this and -- there are municipalities that are willing to do this? the conflict is always

out there. there tends to be a love-hate relationship with the universities and respective musicality is -- municipaliti es. certain, small private schools, i am not sure how much the municipalities will have themselves after this upcoming economic downturn, sales tax revenue and various other property taxes, how much money they will have to support university. time.e: we are out of i want to ask you what your next column will be because i'm sure you would have told us. check out all of his stuff on the terminal, one of the best folks we got writing for us. let's get over to the first word news now with mark crumpton.

mark: health officials are warning there could be a second wave of coronavirus infections in the coronavirus -- in the united states if people don't follow guidelines. deborah birx told the today show if people start going out and socially interacting too soon, the spread could pick up steam. there have been 400,000 cases in the u.s. and 13,000 deaths. new york city transit workers are being hit hard. the metropolitan transportation authority says 41 workers have died and 6000 are infected or are in self-quarantine. the new york times says mta workers have accused the agency of not responding quickly enough to the crisis or two requests for personal protective

equipment. some went -- subway ridership is down. there are signs of setback in italy. the number of cases rose to the highest level in three days, complicating the plans to possibly start using a month-long nationwide lockdown. new cases totaled 3800 compared with 3039 the previous day. cases -- 139 it is now all but certain former vice president joe biden will be the nominee for president in november. bernie sanders dropped out today after a string of defeats that left him with no path. in a live streamed address, senator sanders said he was grateful to supporters who helped him create an unprecedented grassroots campaign that has had a profound impact on our nation. 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 am mark crumpton. this is bloomberg. ♪

♪ scarlet: like many automakers, nissan's priority is to conserve cash while making better use of its assets. we spoke to the coo about the company recovery plan. focus, about our

the closer is not the end of the business, it is the start of reboot of nissan branded indonesia. we are getting into indonesia dna of suv,ional the new suv, and the -- the 300,000to serve customers to which are driving in indonesia.s as far as the plant is concerned, we do start the -- stop the plant for the time being. but with this strategy we hope it will come back with the production facility in indonesia. youret: when it comes to u.s. business, nissan has been putting 10,000 workers on furlough. you have called this a temporary

layoff. does that mean you will be rehiring them after the pandemic is over? >> absolutely. the plants are closed because we want -- this is what we did in now we in the u.s. and are following the regulation and the practices in each country. haidi: what is the current environment for the introduction of new models? are theew models activists for our growth. we are continuing new model development because we believe that once the people confidence, market confidence comes back, we will be utilizing our new products and new technologies to the momentum once again in

the business. pandemicth the concerns, the evergreen worries have taken a backseat. what are you doing to prepare for brexit? what lies in the future given the absence of trade talks? would you be looking at a closure of that side? >> one month for i had the opportunity to visit -- and it has a great history for nissan. we are there last ready to years and we have produced more than 10 million cars in sentiment. out of this plant we have can get -- we have created a new crossover suv. we recently launched it, which is really doing great in europe. so as far as nissan is concerned, we are continuing with our regular business in europe using the sender lent --

using that plant area but we always follow the local business practices. the impact on the brexit could change the landscape we do the business in europe. anticipating leave the impact it can have on the auto industry knowing that nissan is the biggest automotive many facture in the united kingdom, i do believe that the talks between the europe and the editing to will be business friendly condition for the auto market. when it comes to -- we have seen how some downgrades, raising the cost of capital for you. how we'll are -- will your balance sheet look if this pandemic goes for longer than the summer or the fall? >> there is a kind of

circumstances putting challenge on our financial situation. however with the support of our banks and the government support, we are continuing with our operational cash management. we believe with what is happening today is challenging, but it is not impossible and we are continuing with our regular operations under the circumstances. you were listening to the coo of nissan speaking earlier with our anchors in asia. time now for smart charts. it is time. this is with taylor riggs. crawford: taylor: joining me today is louise yamada. she is stellar when it comes to technical analysis heard great to have you on the program. i wanted to have you walk me

through this chart we are showing about a massive pattern in the dow. we are up 20% from the bottom. is this the beginning of a new bull market or is this a bear market rally? >> in our opinion, and thank you for having me, we consider it a bear market until proven otherwise. it is something you define in hindsight. up have had three fast weeks . that is so characteristics of a bear market rally. notice that the monthly, which we consider more structural momentum picture, is such that it has been declining throughout 2019. tried to go positive just as we moved into 2020 but was at a lower level than the previous peak and has since been declining once again. but is something that needs at

the very least some time for repair, when you have that kind of damage that has been done. i think that we need more time to see it moved sideways at the very best, if not come back and test below or break it. that is not clear at this moment. that is an option. going sideways is another. i would say bear market rally. i want to dive down into the stocks we are following today. wells fargo was making news. they had a cap on how much they could lend from the federal reserve. that was lifted today, meaning they can lend more billions of dollars to help combat the coronavirus than previously they could. does that signal anything underlying when you look at the technicals if that is a big positive for the stock? >> at the moment you have got something look like a bounce.

outs fargo had been tracing six-year head and shoulders top which you can see by the arc. the head, the largest, the highs that took place in 2018 would be the head of this pattern. if you wanteckline to call it that. it is also support. but throughout 2018 and 2019, you had lowered rally peaks each time the stock tried to rally. you were already tracing out something that was suggesting people were selling into the rally on the stock. trough.wn 61% peak to you have done a lot of damage here. if wel take a long time get -- i don't think you will get back to the highs on this one. atlor: if you take a look the market and where we are,

what is one key indicator we should be watching if we are in technical analysis, that you would help -- use to help determine where we are? >> good question. given the structural interior ration in the monthly momentum and the fact that this indicator gives us good buy and sell signals, i would want to see that stabilize and turn up the way it did in 2016, the end of august in 2016 give us a good signal that suggested the corrective phase was over. i think it is going to take longer in this or market for us to see that, but it would be something i would want to see. the intermediate-term momentum on the weekly basis is also still negative. we don't even have the intermediate-term evidence of

rally could be sustainable. bear market rallies can be sharp and swift and then the bear claw comes out. analogies.ove the the founder of louise yamada technical advisors. thank you for joining us for smart charts segment. back to you, scarlet. haslinda: what did you miss, joe weisenthal will be joining us to give us the breakdown on what he has been watching during the market rally. this is bloomberg. ♪ this is bloomberg. ♪

i am romaine bostick very welcome back. we are virtually alongside my cohosts scarlet fu and joe weisenthal, who is in austin, texas. what have you been keeping an eye on? joe: a pretty extraordinary day in the markets, the huge rally

that is catching everyone by disbelief. but i'm struck, if you look at the winners today, very much sort of these cyclical areas of the market, real estate, energy and so on. there are some striking facts about this market overall. one of them is the fact the nasdaq now down less than 10% -- people who loved, even throughout this holding on through a lot of the big-name tech stocks, they have done well. s&p, some of the more cyclically sensitive areas like energy. ok, a moveo think like this shows some believe. it is now not just hiding. there is some sort of optimism about economic recovery, judging

by today's internal live shot. scarlet: it shows positioning before the opec-plus meeting thursday and the g20 energy ministers meeting. energy stocks, the second-best performers, gaining. so far in april they are the best performers, up 17.5% but they are in a bear market after plummeting, the beating they have taken. it is hard to look at energy stocks as anything more than a bet on a cheap sector. joe: last week trump tweeted about there was going to be this deal between the saudi's. he was on the phone. everyone was like that is not really happening. surgeddisbelief, but oil after the tweet. ,or all of the skepticism energy has continued to

outperform. there was some sort of turning point and there is no deal yet. also yesterday's news from exxon , its announcement it would cut $10 billion worth of spending, primarily in the shale market. even if the u.s. is not party to any agreement, it is like the private sector and domestic energy players are doing it voluntarily or maybe that is the way market is a to work and we are getting the supply reduction the market wants to see. get youri have to thoughts. you are an expert on costco. we got their results out. what do you make of that? asked me glad you something that is deep in my expertise, costco. i will say this in all seriousness and someone who is specialist,a retail

i saw that jump of 9.6% and didn't look at the expectations. i was like 9.6%, i would have thought it would be higher because of the images we saw, people in lines carrying huge cases of toilet paper and paper towels and stuff. not surprisingly the stock is down. i had no real expertise going into costco, going into this but i was expecting a crazier number and investors were as well. the stock is down. spent many weekends there waiting in line and paper everything, my hungry boys, costco's increase of sales in march did fall short of the consensus estimate of 19.1%. that accounted for the decline in after-hours trade. thank you for joining us today with what he is cap -- keeping

an eye on, joe weisenthal waiting out the lockdown. bloomberg technology is up next. have a great evening. this is bloomberg. ♪ you doing okay?

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for more information on how you can stay connected, visit xfinity.com/prepare. >> welcome to "bloomberg technology." i'm emily chang in san francisco. markets rallying on optimism. advisors are's top working on criteria to reopen the economy. this, as the world health organization is cautioning countries against letting down their guard. in the u.s., in the last 24 hours, 000 -- almost