i would often say the bank of japan can introduce target range of one to 3% but i think the bank of japanhey have to find the right timing to do it because if they don't do it carefully, then the the of japan gives impression to people the bank of japan is giving up the target, so giving up monetary easing so the timing is important. . some ofwhen it came to their full-year forecast for inflation for 2021, core cpi they are saying 0% to 0.7%. 0%are expecting at least when it comes to inflation. what else are we missing here? you mentioned there needs to be more done with small to medium businesses and fiscal stimulus. it is just not enough. tot can the bank of japan do make it not seem like they are still behind from other big central banks like the fed or the ecb? example, between japan and the united states, the difference is in the case of the united states, the treasury soks together to create this the fed can take risk by doing these corporate bond purchases, main street financing facilities but japan is not doing that kind of collaboration with the government. isrefore, the bank of

the bank of japan are likely stepping up asset purchases. stop this virus outbreak from destabilizing the financial system, not to mention triggering a wave of bankruptcy. last week, we heard the bank of japan will debate unlimited bond purchases. take a look at with south korea is doing. the kospi gaining for tens of 1%. extra budgetseen passed in south korea to handle this coronavirus outbreak. we are hearing from look up media a third extra budget is expected to be nearly 30 trillion yuan. we have seen a little bit of pressure for the south korea market given the uncertainties around the health of north korean leader kim jong-un. also hurting sentiment. howi: taking a look at things are trading in australia. a quite start to the week. -- a quiet start to the week. we have no trading in new zealand. we do have trading on the asx but no settlement today. this is what we are seeing in those first few minutes. we are continuing to watch national australia bank to see might come of the trading halt. sale placement as well as the colossal clien

important to recognize here the extent of the gains we're seeing this morning banks, obviously, are rallying in part on the bank of japan news and surprising deutsche bank, let's detail in terms of what we heard from deutsche bank this morning, if we could highlight that story for you and perhaps take a look at deutsche stock. up more than 11.5% this morning after they prerelease some strong q1 numbers. they have surprise on the revenue front and scrapped their target when it comes to capital. they had 12.5% 2020 capital target they said they may temporarily come up short when it comes to hitting this target, but the reason is they want to support more lending to the economy and support their clients. investors seem very surprised and positively reacting this morning to that news let's get out to annette on this story. does this change the trajectory for deutsche bank as an equity story? >> i wouldn't go as far as saying that. remember, deutsche bank was trading at roughly tenure row before the coronavirus outbreak, so i think the equity story -- it's not the greatest but obviously it's about the outlook and also about

bank of japan says they will take on unlimited buying of government bonds, lifting the cap also on corporate holdings. i, he joins us now. , kitchen sink, we are still throwing it. michael: central banks are all as string the question of what you do when you have throwing the kitchen sink. in the back of japan's case, you just make the sink a little bigger. the bank of japan already has negative rates, corporate bond and etf buying, and an emergency lending program, so they just decided to make those programs a bit bigger. unchanged at rate -10 basis points. remember, they do yield curve control. they mentioned they would buy as many corporate bonds as they need to and expanding access to its emergency loan program for a wider range of banks. for analysts, there's a bit less here than meets the eye. they dropped their ¥80 trillion limit on government bond buying, but they weren't buying anywhere trillion, so it doesn't mean all that much other than psychological. what is significant is that the boj in its statement dropped its guidance for momentum toward achieving the price stability target

buy as many government bonds as necessary, what does that do to the math, given that the bank of japan wasn't buying as many as it said it could anyway? vasileios: the way i see it is that the announcement by the bank of japan today was a pure and simple consequence of the fact that the japanese government is enacting fiscal stimulus. therefore, you're going to have much higher debt issuance. basically, what the boj wants to yieldso ensure that don't get stabilized to the upside because of increased positions. but let's be very careful about this. ensurenouncement is to the stability of the yields and not put downward pressure on yields. the yield curve control of the boj has not yet changed. vonnie: if everybody is doing "whatever it takes," and we are in a medically induced coma, the global economy, at what point do we get to see inflation again? are we cycles away from that at this point? i think this is the million-dollar question. i will be very honest with you, i don't have the answer to this, largely because we have the precedent of what has been happening over the past 10 years

policy editor kathleen hays with the preview of the bank of japan.ore on what the japanese central bank and do next. we will be speaking with nicholas smith and the keio university professor later on. this is bloomberg. ♪ ♪ shery: boeing is walking away from its proposed $4 billion merger with environ. the partnership would have given boeing a range of smaller single aisle jets to compete against airbus. this will be -- this will weaken boeing. airbus is not without problems and is warning staff it is leaking money and meets urgent -- needs urgent cost cuts. a letter obtained by bloomberg said a production cut of up to one third is already announced and could not be the worst case scenario. airbus is reassessing the long-term outlook for aviation. virgin atlantic is said to be considering a range of rescue plans including tapping u.k. government loans. talks are in the early stages although richard branson's request for funding has left -- met with government resistance. offer any it will not assistance and now virgin atlantic is facing insolvency. b

then the bank of japan saying it will buy as many bonds as it needs. that is strengthening yen today. new york crude come of this contract at $12.60. the u.s. 10 year yield at 64 basis points. let's get to our guest now. we have a very fascinating guest right now. ed hyman, institutional investor economist of the year for decades. the surveys he carries out are unparalleled in the industry. we are going to talk about central banks, the ecb, and the fed meeting this week, and the bank of japan coming out with some decisions today. chairman of evercore isi, is with us now. small and medium-sized enterprises, and companies that do business is with china. obviously, the data is falling off a cliff right now, but in your estimation, what will the severity of this recession be in comparison to, say, 2008? ed: much worse. but this is a very interesting time for me. i've probably been the most bearish person on the street with our gdp numbers down 50%, and like you say, things have been kind of freefall, company surveys included. i just wanted to share with you

the bank of japan is removing the cap on the amount of sovereign debt you can buy. not bought at anywhere near that level in recent years. the boj is also in the cap corporate debt, more than doubling the amount it can hold. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. icahn isinvestor carl not buying stocks right now. he is hoarding cash, shorting commercial real estate, and parent for the coronavirus to wreak more havoc. he spoke to our erik schatzker about his oil purchased during last monday's crash. >> we keep it pretty well hedged. but, even the hedges could not stop us from losing some money. but, we still have quite a bit, so i am not crying about it. i have always kept a large amount of cash, cash equivalents, for a stormy day. i think there is going to be very interesting times ahead. well you have to be extremely careful in this market, and we can discuss that, i think there will also be some good opportunities. i can't talk about it short-term. short-term, you ma

the bank of japan commits to unlimited buying of government bonds and ramps up purchases of debt. lans emerge from lockdown. and deutsche bank's surprise profit. revenues beat estimates, while earnings season is now in full swing. welcome to "bloomberg daybreak: americas" on this monday, april 27. i'm alix steel. let's get right to it. we had softer futures overnight, and then the bank of japan taking off any restrictions on government bond buying. i saw one note that said the event of japan purchases note is no bigger than all of japan's gdp, so that is leading optimism in the market, although not a weaker yen. oil again taken out to the woodshed, particularly in the u.s., down by almost three dollars. it is time for all the market moving

jesper: basically, you know, this is a wonderful gesture, you know, from the bank of japan, lifting thellion cap. japancally, the bank of is just targeting zero interest rates for the 10 year bond and whether that takes, you know, 20 trillion yen or ¥70 trillion does not really matter. right now, there is a lot of pent-up demand amongst the japanese banks so funding the additional fiscal stimulus in japan is really not the problem. the more important thing about the bank of japan is the increased commercial paper and corporate bond buying that they are likely to be discussing on mondays board meeting. i want to throw up this chart, taking a look at where we are when it comes to boj holdings. 40% at this point. this chart shows pension funds hold another quarter, just about 3% held overseas, so you know, there's obviously no doom, gloom over the debt burden and the risks associated with that because, domestically, it is held at this point. i mean, does it make a difference at this point, given how extraordinary we are on the spectrum of extraordinary monetary policy that the boj can exec

as we wait for that headline unemployment rate to come through, what do you make of the bank of japan'sal of those limits on bond buying? at this stage, is it kind of procedural in terms that we know that they will really go to the extremes of what is really an extreme level of monetary policy? and will they be getting the impact that they are looking for? were to compare what the bank of japan has done -- the hyperactive set, there is a tendency to be underwhelmed. if you look at the details of their decision yesterday, a lot of the stocks, as aggressive as it sounds, are a continuation or expansion of measures that they already had in place. for example, tripling the upper limit of their commercial paper and corporate bond purchases, expanding the lending program, and of course, the commitment to buy unlimited jgb's. if you look at that, they have done all that, including the fact that they always have the capability of stepping up their bond purchases as needed. a lot of what they did yesterday had a kind of marketing and optics element, and i think it reflects the fact that the bank

the long-held goal of 2% inflation as the bank of japan wrenches it up stimulus to keep the economy frome. we will get a wrap from that and other central-bank action expected this week. this is bloomberg. ♪ shery: bank of japan governor has made it clear that they are pulling out all the stops the shore up the economy as the coronavirus starts undermining the tight labor market. whateen hays is here with kuroda had to say and look ahead of japan's latest job numbers that are out in less than one hour. what is the boj signaling right now? kathleen: this isr iding to the rescue. this is all about fighting off the impact, the severity of the coronavirus crisis. what it is doing to japan's economy, what it could do if increasing steps are not taken. we are going to buy bonds, japanese government bonds without limits. we are going to buy corporate bonds. this is what the boj, this is what kuroda stressed yesterday. he was what he said in the press conference after the policy decision. we've implemented additional easing measures today as we see japan's economy remaining in the severe state fo

of 16%. things became rougher. further north for japan. the bankjapan showing a negative move among manufacturers in that country slipping to a read of negative eight from zero. the first negative print we saw in seven years elsewhere, south korea at 20%. further, australia logging its worst quarter on record there with the s&p down some 24% up by about 3.5% >> now to the early trade in europe julianna tatelbaum is live in london >> good morning. so european stocks are kicking off the next quarter on the back foot across the board every region is trading lower the cac 40 down by the same we got fresh manufacturing data as well showingout put this is expected to be one of the newest data points one other is the action on bank space. uk banks lenders have scrapped their dividends for banks to cancel dividends and buy backs and bonuses to bankers to use those funds to show up funds and lending to households that need it reaction has been negative you can see, we are seeing a great deal of pressure it was a dismal quarter for banking stocks as well fol

of course it helps sentiment. japan, a country with externally --mulus, was still governments and central banks and policymakers are not at the limit of what they can do. fact italy washe not downgraded. really the message, some economies are trying to reopen. australia is looking to reopen. these stories are driving positivity at the moment. the price action is positive given that we started today a little bit negative. matt: we are getting breaking headlines right now from volkswagen. .he ceo speaking they are reopening factories all over the place. he says a swift decision is needed to bring back demand. he's talking about basically a cash for clunkers redux. he's calling for state backed incentives to buy the car sales. it has been a common theme over the last week or so in germany. do you think we are going to see cash for clunkers here or globally in order to bring back car sales? to the'm not as close german issue as you would be. i will say we cannot rule out any action in this environment. a month or so ago, the idea of the fed would support the bond market were crazy. here we have the example of capital m

tom: do we expect more action from the bank of japan? re more they can do to expand the balance sheet? do not think it is going to be accompanied by some dramatic fanfare, but under their policy framework, the bank of japan does have the ability to expel their purchase of bonds. the stimulus spending, which is going to involve a chunky extra deficit issuance, but we have been seeing so far is the bank of japan has been buying up more jgb. that trend can continue. we still think they can do negative rates, funding for lending. support the corporate sector further. overall, they have already done quite a bit with liquidity provision. we are hoping for fiscal 2 am company -- for fiscal two accompany the monetary easing. yvonne: japan has always been known for a jobs for life corporate culture. do you think that increases the prospects of a cover? that we are not going to see the massive layoffs have seen in the u.s. and europe? that is a very interesting point. i do think that is one advantage that japan has, which is this rigid labor market

-- where does the bank of japan go from here? here expectation the economic outlook is going to pick up at all? we have seen the bank of japan stretched the limits of the policy creativity? we are looking for japan to shrink the 4.8%. inflation is mild given they had the consumption tax hike last year. we are not expecting significant action going forward with the bank of japan. back in march they said they will be buying more government bonds, etf's and the like. they have not raised purchase targets. this is more targeted. we are not looking for anything like further interest rate cuts, given it is negative. the senior asia economist. the cleveland -- two focused on limiting damage to financial markets and the economy to be concerned its actions will encourage excessive risk taking by investors. while the fed is moving into unprecedented territory, it is trying to help companies impacted by the virus through no fault of their own. in a real unprecedented, incredibly deep shock to the economy. we could really use tools as best we

of further into the week with deutsche bank. seachange is a real here, francine. it comes down to central banking with bank of japan overnight and ecpa -- ecb and fed coming up. what is so important is a massive shift and the quality of the risk-uncle relations this morning. i don't want to over -- of the risk-on relations this morning. i don't want to oversell it, but it is that type of monday. francine: we will ask how some of these countries are doing with lockdowns in a second, but first let's get to first word news in new york city with viviana hurtado. viviana: as soon as may 15, that is the date could begin reopening. governor cuomo laying out a phased plan that starts with construction and many factories. he said he would probably begin upstate before moving to the new york city area. yesterday the state reported 367 deaths, the lowest in almost a month. to the u.k., where horace johnson is back at work. the last cup -- where boris johnson is back at work. the last couple of weeks he recovered from coronavirus. in his first public statement, he urged people not to give up on social distancing measures. he s

can keep buying junk bonds they can keep buying stocks they can you know in japan the amount of the balance sheet of the bank of japan is in excess of the g.d.p. of japan and they've got close to 300 percent debt to g.d.p. as a country america on that basis combined other 15 trillion dollars worth of bonds and stocks and the endgame is not a collapse due to policy and an economic model that's unsustainable the end game is that you have a prince class that owns all income producing assets in the country and you have a pauper class or a peasant class that is living in the dirt it's neo feudalism by design it's not a mistake in policy and the answer is it has to do with understanding that the central bank is at the center of it all the answer is watching kai street. for in knowing about gold silver and because you don't need to participate in the system you will be a loser in the system sure keep on turn tuning into cold air and the view and rachel maddow and get your bread and circuses and say bull bernie bull trump and that might make you feel better it might help you get through the next hour but how do you

of further into the week with deutsche bank. seachange is a real here, francine. it comes down to central banking with bank of japanand ecpa

while the south avoided the worst of the coronavirus outbreak, many there rely on informaljobs and are ineligible for government relief. the japan times reports that the bankw economic stimulus measures next week. meanwhile france's le figaro outlines the measures the country will take as its prepares to ease its lockdown from may the 11th. emmanuel macron has been speaking to state leaders in the past few hours. children will be allowed back to school if their parents are willing, and masks will be required on public transport. the daily mirror feature the duke and duchess of cambridge and their children joining in tonight's ‘clap for carers' event held every thursday now in britain. it reports a virus test for ten million workers being made available in bid to get britain out of lockdown. the daily telegraph carries the same picture of the royals and claims borisjohnson is planning to return to his office as early as monday — to take back control of the coronavirus crisis. the ‘i' highlights all "essential" workers in the uk it does not say specifically monday but as early as monday. the ‘i' highlights all "essential" workers in the uk showing virus symp

today was the bank of japan doing so saying it will do so for an unlimited time.hat's a green light for investors to come back into the market, rosemary. if you take a look at the asia market performance, tokyo is the biggest gainer. but it builds in the shanghai and hong kong. london is up sharply, germany up sharply, france with solid gains as well. we're going to hear from the u.s. central bank earlier this week, also the european central bank which is supposed to give a similar signal as the bank of japan right now. it's all this liquidity being chased into the market to prop up the economy and hopefully the recovery kicks in. but the oil market is telling us something extremely different right now and it's a commodity and it's all based on supply and demand, not the central bank's intervening. >> i always learn something from chatting with you. john defterios, joining us live from abu dhabi. >>> it has been one month since the president signed a record $2 trillion relief package to help struggling americans. since then at least 88 million people have received

the bank of japan has unveiled measures to stimulate the economy. policymakers held a one-day session on monday instead of their regular two-day meeting to deal with the urgent situation. nhk world is at the boj with the details. >> reporter: the boj says its purchases of government bonds are now unlimited. the expansionary move is in line with the goverernment's emergen economic measures that include stepped up issuance of government bonds. another part of the boj's asset purchase program is to help with the funding needs of companies struggling amid the pandemic. the central bank will boost its buying of corporate bonds and commercial paper up to 20 trillion yen or about $185 billion by the end of september. the measures come as a call by the government for people to limit their outings and decisions by companies to halt production affect small business and large corporations alike. furthermore, the boj has sharply revised downward its outlook on japan's gdp growth for this fiscal year. its projections see the contraction of between minus 5 to min

the bank of japan they ordered all of the families to sit or stand in the did and then they shot after 5 minutes they shot the 2nd time they heard weeping they shot a 3rd time. at the door and my 6 year old son and i we laid down in news the rights to cover. 3 or 4 bodies were found on the. side. of. the the dark backs of that day march 16th 1068 when the dispute an army photographer captured moments of a bloody assault. when the story would have been leaked out more than a year later there was an investigation $25.00 members of charlie company and their officers were charged. with murder there were few trials only one person. was found guilty he was never punished. charges against most of the soldiers were benchley dismissed. the what is know is the war that remains an open question. some of them is who slaughtered unarmed villagers who may want to buy their memories. but for those who crawled out of that crush of blood and bone the horror is still fresh and that. the only one left. i was 11 years old. reminded of the dead every day it's his job not only does he bear a deep furrow fro

you over there in japan they invented this idea of quantitative easing they've been leading the world and lowering rates down to effectively 0 their size their balance sheet on the bank of japan and south more than 100 percent of the g.d.p. of japan and america the balance shape garbage that they've bought back from australia to bail them out is about $5.00 to $6.00 trillion dollars worth but the g.d.p. of america is over 20 trillion so can we expect the central bank to buy another 15 trillion dollars or so of junk to keep the ponzi scheme going the word they use is whatever it takes that european central bank does and i think that the model here whatever it said so that the one who lives in the stock holders don't lose and it. you know it's all the largest the stock market jump since the end 90 years last week when the bailout for the wall street. 6 percent brilliant dollar program came out and the idea is that the economy has to bear all of the low labor small business and industry none of the loss should be suffered by real estate or the banks because the loans written by real estate and the banks. it's amazing that this is not more drove the bailout is not wrong

of 20%, 30% across developed markets. it is going to want to buy it? well, if you have your own central banks willing to buy it without limit, like the federal reserve or the bank of japan or the bank of england, then you are in good shape. if you are a nonmember, there are already more question marks. if you are in an emerging market, there are even more question marks. that is why we are likely to see differentiation in terms of yields once this is over. in windows where you have central banks who can buy the graft versus -- the debt choreographed over those who cannot. francine: isabelle stays with us. conversation with a co-chief investment officer. you do not want to miss that interview, online and on tv at 10:00 a.m. in new york. that is 3:00 p.m. in london. this is bloomberg. ♪ good morning, everyone. tom keene in new york, francine lacqua in london. in the middle of the week, challenges in the market. we see that in lower yield and lower oil prices. opec-plus, a major giveback. us, isabelle -- isabelle mateos y lago with us. from blackrock. one of the great things i see right now is a complete mystery of the x axis. we are trying to figure out lockdowns through

the big winner was japan, the bank of japan extended the stimulus program. pledged to buy an unlimited amount of bonds to keep borrowing costs down. nikkei average up almost 3% overnight. quick programming note. join us tomorrow, one of america's top philanthropists michael milken is using the power of the institute to bring together leaders in industry, government and medical research to aid in the war against the pandemic and find a vaccine. he'll join me live tomorrow morning with a special interview at 8:00 a.m. eastern. do join us for michael milken tomorrow. shocking new video of a packed house party defying covid-19 restrictions. cheryl casone with the details. cheryl: and the video, maria. good morning again. reckless and utterly unacceptable, that is what chicago's mayor is calling this new video. it showed more than 100 people shoulder to shoulder, dancing and drinking. one appear goer said there were about 1,000 people between the yard at the house at the party. police are investigating the video. police say the homeowners could be punished. illin

of central banks. that is what it tells you, but there is almost infinite amount that can be played. it brings up a topic that is very timely now of debt monetization. in the bank of japan'stheir balance sheet is 100% or more of gdp right now, but it does not matter as much because their debt is held domestically or from the central bank, but not everyone is like japan. what are some of the factors that you look at? what economies can transmit modern monetary theory? viktor: you are absolutely right. not everybody can deploy those tools. in order to do so, you need to have certainty requisites. you need to have monetary sovereignty. and currency.ng number two, you have got to have some solid institutions of state so you are not really democratic republic of congo and the likes, and finally, you have got to have demand and supply moving together. you cannot have supply bottlenecks, otherwise, it becomes very inflationary, potentially. of theind, a lot emerging markets did not we will see probably as much as 75% of global gdp can deploy those tools. the other 25% will very much lead a conventional market. the question is with investors will look at some of the markets like

bank of japan policymakers will discuss allowing unlimited government bond purchases next week. it would replace their current target as officials come under pressure to shield their economy from the coronavirus. joining us is a senior multi-asset strategist. global equities heading for a weekly loss. is the mindset among investors after two weeks of gains changing at all? are we seeing more fragility come through? where there is perhaps not as much conviction policy support can make up for bad economic data? nejra. morning, i think that is a really good point. on one hand, for policy support, absolutely critical. policymakers.aud policythink about the support enacted in the financial crisis, 2007, 2008, it took about two years to implement less policy support. is politically fraught. but if they are actively seeking where they need money the most. it takes a bit of time. that is incredibly important for the markets. need policyy support. need to see some better news. on the medical front. weeks, if wele of think about infection rate, things like that, yesterday was a big setbac

of us gdp. in japan i don't know the exact number but 90% of gdp, the size of the bank of japan's balance sheet so it could be bigger. much of the increase is temporary. a lot of the commercial paper facility are short-term loans, and as things normalize those loans will be paid back in the fed balance sheet will shrink. but i think the fed has capacity to increase its balance sheet and appears willing to do so significantly and that is appropriate. i don't think there's a real danger from that. i don't think for example that inflation is going to be a risk. if anything low inflation will be more of a concern then too high inflation. as far as borrowing is concerned the federal government is borrowing a lot, this is when that borrowing capacity is so valuable when you have a national emergency which this is. paying for this with taxes would be counterproductive because it would d press buying power when the economy needs buying power. i think the question of sustainability is a tough one. there are issues as the population ages and cost of medical care go up and we see projections of the federal

the ecb can do the same, the bank of japan can do the same, the bank of england can do the same. but across all emerging markets, they do not have that auction -- that option. that is why they have to borrow in foreign currencies so much. that is where -- take that away, or take much of it away, and they could get back to growth much more quickly, and the global investor would do what he does best, which is turn around and say i am going to invest in these high-yielding -- and probably see this as a once-in-a-lifetime debt moratorium and move on and don't worry about past investors and what they have suffered. is, the key question here do you see a restructuring, and what it does to currency? i understand they get a one-year or two-year debt moratorium or what it is. rogoff and reinhardt imply that with that comes a restructuring of debt. do you see that, or can they do it discreetly, separately from restructuring? kit: i think you have to find a way to allow these countries to get access to ongoing capital so that they can get their economies to function. so from where we are to

we had a survey out of the bank of japan which showed sentiment among the big manufactur manufad servicesen-year low. the coronavirus pandemic has cost millions of americans their jobs and now they face a new crisis. cheryl casone with details now. cheryl. cheryl: well, that's right, marie y it's a day many out of work have been dreading, the first day of the month and that means that the rent is due. some say the federal government has already taken action to protect renters with bans one vickss being put in place. some for a few weeks, others for the duration of the coronavirus state of emergency. the federal government is issuing a 120 day moratorium on evictions from federal subsidized housing. well, xerox dropping its bid to acquire hp. the company blaming the coronavirus outbreak for ending the $35 billion offer. hp has said that xerox's proposal under-valued the company. hostile takeover was backed by carl eikan. comedian larry david is urging people to curb the time they are spending outside. >> i basically want to address the idiots out there, you're socializing too close. it's n

how much more can central banks do because they have a balance gdp, as thentage to bank of japan has? jane: i think it is still going to be all eyes on the fed. and this concept about the fed being the world's -- the global central bank i think is becoming more to fruition. this is because of the use of the dollar as a transactional currency. this has been something which has been going on since the 1970's, really since the dollar became really important in the oil world, since the deals back then. growth ofly, with the emerging markets, it is more and more a transactional currency. i read a while ago and the bank of england report that even in ,he u.k., that dollar invoices around 30% of the total. that is sterling. if you go into emerging markets, i think we can all assume that a far greater percentage of invoices are going up and oilers -- dollars has emerging markets. this avoids the potential market volatility that emerging-market half. this is why the dollar is so important, and i think this is why when you look at the growth of emerging markets over the last decade, if not the

whether it's the ecb, the bank of japan or our central bank especially at a time where the ecbs have an issue with stimulus and our central bank might be floating the idea of negative rates. we all want to be watching really close the dollar index, if you look at this chart since march, you can see the big hump on the left hand side. it's a whisker under 103 we're getting close. it was the highest in three years. we're only a couple of cents away at a three-week high now. kelly, back to you have a safe weekend. >> thanks so much. >>> coming up, it's no secret that dozens of larger, multi-dollar companies severed money to vhelp small businesses. >>> as we ahead to break take a look at the leaders on the dow today. home depot tops the list apple and any knike are up thers well we're back in two minutes. at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you

the bank of japan supporting its economy. vix at

it continues to strengthen as the bank of japan decides to buy more and more and not cap anything itying. crude is trying to hold onto the $12 handle. early for this particular contract. let's have a look at the different sectors that are higher and lower in the s&p 500. the automobile sector is higher but that includes harley davidson, which had earnings expanding it's junk don's -- it's junk bonds. for the companies that are higher, they are raising more cash in getting more liquid that goes well for gash. we saw a big increase today and several other companies. it is interesting to see what investors are awarding. on the lower side, united particle services down 4.6%. that is contribute into some of the transportation losses. volume, but the last mile efforts are going up in a big way so it is all bad news for ups. costs are up and volumes are down. picking up on that theme of what is happening in the aviation sector, there was an iata briefing on the cargo business. the airline industry is continuing to burn through cash. travel around the world is very light and the prospect of

the bank of japan supporting its economy. 33, bouncing around a little bit today. crude oil heading toward 13 but we are really in this range between 11 and 13. let's get a deeper dive into the markets. taylor riggs is standing by. taylor: let's take a look across asset, yields are falling along with the equity markets. the 10 is down to 61 basis points. the 2-year on down to 20 basis points or so. that means high grade is rising, but high-yield also selling off. similar things happening in energy. you are getting a rise in energy stocks even though crude has not been rising as much. still hovering under $13 a barrel. at some ofake a look the dynamics going on within the energy market. the drop earlier was in the crude june futures, rolling over to july. global told their clients to go out of june and go later. uso also rolled out their positions from june futures into later contracts. what happened in may, they are trying to avoid in june. economic data this morning as well, which was really off the cliff. always anticipating that kind of data particularly for thi

yen is paring some of its gains. 107.29 after the bank of japan said it would do what it takes to keep the economy in check. the 10-year yield at 64 basis points. they are in that range, quite happy to stay there. president trump and retailers are set to announce expanded coronavirus testing programs. that is something to look out for. standing by is taylor riggs with a deeper dive into the market. taylor: some broad-based gains within the equity market. i wanted to dive deeper into financials. one of the best performers today, up 3%. this after yields on the 10 year are rising. you are seeing financials benefit from the steepening of that yield curve, lifting up the long end of the curve. also getting a little bit of strength, the rebound. crude on the other side of that. clearly bearing the brunt of this with the oversupply problems, lack of demand. i want to take a look at the equities market in the last 24 days. equity markets bottomed out on march 23, going down to 2237. since then we are up 29%. so.74 or level at the highest since march 10, but we have not been able to close abov

a headline just crossed from the nikkei in japan that the bank of japan is looking at unlimited bond chases which is -- it's a crazy thought. i mean, japan already, the bank of japan already owns such a sizable chunk of the bond market, but the all-in nature and the fact that markets appear to be relatively responsive to headlines like that. even japan which has been throwing it all in for the last few years or so. >> absolutely. absolutely >> $8 trillion in global stimulus so far. that headline from nikkei was breathtaking along with the fact, sara that the ecb is agreeing to take below investment grade debt as collateral our federal reserve buying junk bod etf. we're seeing central banks open up in ways we've never seen before, and that's one reason why people are skittish, because of mission creep for lack of a better word. what else might they do down the road if necessity raises its head >> the central bankers, they can be creative when it comes to pulling rabbits out of a hat and fighting this crisis did you notice the latest gallop poll showed that jerome powell had a higher fa

the bank of japan saying it will buy government bonds and there's no limit to that. r from the u.s. federal reserve and the european central bank. we'll get first quarter earnings or the gdp for the first quarter in the united states. we know that's going to be terrible. we know the second quarter is going to be even worse. the real question is when do we cover in the third quarter. this is a big question. but right now the stock market, we see japan rising better than 2.5%, strong gains in south korea and hong kong. shanghai just marginal gains but still it's all up vis-a-vis the demand barometer which is oil today. >> we are not off the roller coaster yet. john defterios, appreciate the update, many thanks. >>> well, health inequalities in the midst of a pandemic. when we return we'll take a look at the devastating toll the virus is having on people of color. [horns honking] birthdays aren't cancelled. hope isn't quarantined. first words aren't delayed. caring isn't postponed. courage isn't on hold. and love hasn't stopped. u.s. bank thanks you for keeping all of ou

at zero like the bank of japan or 3% because this actually suggests people are much more bullish on the prospects for the economy? what do you think? what would you make of rates and where they go from here? >> i would argue that they're probably happy with interest rates where they are right now i think there's really no need for 10-year treasury yields to trade at 0 because the purpose of asset purchases is liquidity to the treasury markets not necessarily to stimulate the economy like it was during qe-1 and the focus really now stabilizing the markets, providing liquidity and having a semblance of normalcy and i would say 10-year treasury yield 60 points is a positive sign for the markets. and that's why you're seeing the risk taking in equities as well as in corporate bond spread. >> let's follow up on that we hear this all the time, people say, kelly, the market's up 30%, 40% off the lows and the bond market said we'll retest the lows and it is worse out there. your interpretation seems different. why do you think the level is a bullish sign >> i think that keeping rates accommodat