monetary policy race to put off fires one after another during this endemic the fed has become the lifeline to main street as well as wall street the fed and treasury are becoming the main lenders to american businesses and in doing so it's putting american capitalism at risk so what is the fed going to do when it keeps on backstopping everything where is the market price discovery then when this it's all over will the fed actually retreat now i want to branch out here as shown earnings are out for wells fargo and j.p. morgan as we just said there as christine just said that if they and they have foreshadowed that the rest of the earning season is going to be pretty bad even with the negative revisions that look is not great so then why are we seeing a rally in markets here on tuesday and really almost the last week when we knew these were coming. yeah absolutely now we've had is really you know you we've had a sell off that was 35 percent and then we're seeing a recoil of that and part of that is just because you've got institutional shorts that are covering those shorts and you cover a short with a buy so that makes bu

to be at the height of the financial crisis when it first occurred also director of the new york fed the wall streetocated fed of the 12 member reserve system he was one of the people like hank paulson at that time treasury secretary when i came into goldman ceo and chairman of goldman sachs and tim guyton are who had a lot of relationships and the new york fed president and then became the treasury secretary under obama at the turn to see how all these individuals who have the ability to direct policy and money coming out of washington through their own institutions which are public institutions. these banks trade on the stock exchange, they are monitored by the federal reserve because the day job is to be the regulatory oversight body and they are monitored but yet to have such a tight relationship with the political powers. and then when they need it with a far greater figure than individuals are able to galvanize and as a result money goes from taxpayers and with the glass-steagall act in 1999 and from 1933 so typically with the taxpaying public and voters of speculation that banks could do. the

hopefully it will work in the future, but, neil, i've been speaking to wall street executives who deal with the fed the fed has regular meetings with top wall street executives to give them insight into the plan, and check with the plumbing of the banking system. here's what they are saying, that they are basically saying this level of fed stimulus is historically unprecedented. it's far surpasses anything that occurred in 2018 when the banking system needed stimulus, when it was basically insolvent. it's around, i guess if you're going to add it all up, it is at this point, we're talking 10 trillion, maybe more just from the fed. and this is all, this is all as part of easing and quantitative easing and low interest rates and all the various programs you're seeing including the one today, the additional one today. here's what has some people on wall street nervous, even if you see the stock market go up. markets go up on low interest rates and fed easing because obviously, you, if interest rates are so low, you have to find a place to put your money often. that is in riskier assets like stocks. he

the session. sits.is where euro-dollar time now for wall street beat. first, the fed on leverage for wall street. then a 3 billion-dollar fund faces a 30% drop. and softbank scraps its deal to buy wework stock. joining us is bloomberg's sonali basak. so the fed yesterday loosening those leverage rules, basically capitale up some to spend. sonali: banks should be more or less excited about this because it does free up their funds. is this the right time to be doing that when they are seeing so many stresses in the economy? time will tell how much this really frees up the banks to take more risk, extend their balance sheets. this is really meant to also free up issues in the treasury markets where we saw a lot of freezing up during the last six months. time will tell if this is going to work for the banks or not. supported this new change was while brainerd, she wasn't for some of the other changes the federal reserve was making for these banks. alix: fair point. sticking with some of the big wall street guys, the treasury department is going to hire 3 wall st banks for

gone from the strongest labor market in a half century to one of the weakest in no time flat it didn't matter to wall street because the fed is buying all kinds of distressed debt you don't see -- i keep saying it's so important. buying municipals. some of those are hurting. buy high yield corporate bonds that's fabulous news because those were two big pressure points in this rapidly deteriorating economy. what a difference from the old days between the $2.2 trillion rescue package from congress and more on the way, it's clear to me the policy makers are thinking big, and they're willing to spend big to keep this economy afloat. and i say cheers unlike 2007 when the whole federal government was committed to doing nothing -- you know why. >> they know nothing, they know nothing, they know nothing >> they didn't care. >> they know nothing >> they were busy thinking about who they can punish. not this time around we are moving aggressively to put money in the hands of the unemployed, the under employed, the small business person, the person who lost the dry cleaners, the person who lost the barber shop, the person who lost th

the fed's normal comfort zone. i take as a clear example of that the so-called main street lending facility. the fed has never been a main street lender. it has been a walltreet lender occasions in the financial crisis, it has been a backstop lender to various companies that may not all be banks. that was. unusual. -- was very unusual. for main street businesses, this is unusual for the fed. they had no preprepared mechanisms, no internal expertise about doing that. i am sure they are gathering that as fast as they can. it was just an unusual or unnatural task for the federal reserve. day,: at the end of the this is a crisis hitting main street, not so much wall street, despite the volatility we are seeing in markets. blunt setnse, is it a of tools the fed has, and why they are leaning toward putting pressure on the fiscal side? or is it more unconventional things they can do, bearing in mind time is of the essence. there is not a lot of time to research and data collecting. prof. blinder: they are trying to figure out how to distribute it. when that was announced, it seemed like a long time ago, but everything is going at warp speed. i felt that was an

the fact that the fed is in a way that allows private members of the bank, but ultimately does provide credit and takes meetings with the heads of wall streetbecause they are the primary shareholders in the fed. as a historic shareholder, they created the fed. the fed is today, there's a major flaw and how it was created and how it exists, it exists ultimately to benefit its members. it says it's too help the greater economy and greater public. the reality is, if you look at the actions, their personal when is a situation large institution is in trouble or necessity to help j.p. morgan chase or somebody who has an institution as part of the history and fabric of how it was created and was benefited and continues to benefit from this subsidy not just the fed but all the hardest things in their respective countries. i think that is a flaw. >> office on the u.s. economy includes the former chair and president of the u.s. export import. free-trade agreement impacts on the economy and workers. >> politicians practice, some people went something and we did a bad job in this country of taking care of people who lost jobs. people's lives were disru

at this point, the fed has done so much, nine new lending programs, but they surprised us by expanding the muni lending program, so anything's possible. really what wall streeto know is what is the fed's outlook for the economy, how bad do they think it will get, and how long do they think this will last, how long do they think zero interest rates will last? if he can give any guidance on that, that would be helpful or investors. there's a feeling they may put more of a date on the idea of when they would keep interest rates low until, but they may see how things develop. has been a little bit of disagreement among some of the regional president's about exactly what we will see in the second half of the year, next year. of them say it will bounce back in the second half, others are not show's sure -- so sure. mike: mary daly says we will not see growth until 2021. the reason they want to not be specific is we are waiting on gdp tomorrow. trying to extrapolate out what we may see in the second quarter . the worst forecast is for a 65% contraction in the second quarter. that kind of thing would probably call for more stimulus. david: that is when i did not see

in the short term, you can say the fed has the concern of helping more main street than wall street. or of small and medium-sized enterprises, and a lot of the taxes are coming from the treasury or fed goes to bailing out archer corporations and larger institutions -- larger corporations and larger institutions. the fed is going in the direction of buying risky assets like high-yield bonds, that is another risk. francine: you basically talk about 10 risks and you lay it out very simply. you say these were risks pre-covid-19 that threaten to fuel a perfect storm that could sweep the entire global economy into a decade of despair. what would that mean right now for markets? our markets not seeing this? our markets not seeing the risk, and do we do a big correction on the markets? nouriel: there are scenarios for the markets. my base one is there will be a u-shaped recovery. we will not end up into an l-shaped depression this year. currently, the markets instead of pricing in a v-shaped withery, is consistent having a v-shaped recovery of the economy. the other markets are not pricing in

households who need it and why the federal reserve is not just trying to bail out wall street over main street, which is sort of coming up in the narrative now as the fed steps into places it's never been before, for instance, buying riskier corporate debt >> lots to discuss and lots of people to discuss with it. we'll break down all of the headlines from that fed conference with sarah bloom raskin and others. facebook, microsoft, tesla, ebay, qualcomm reporting after the close, which is about 39 minutes away we'll discuss facebook with the cfo, david wehner, shortly after the numbers hit. earnings have mattered over the last couple weeks, a lot of after-hours movers joining us to react to that fed conference and the rally, mike santoli, michelle mayer, head of u.s. economics at bank of america global research, and david zovos, chief market strategist at jeffreys and cnbc's steve liesman as well steve, i'll start with you you weren't in the room physically but you were metaphorically what was your take-away on the tone we heard there from the fed chair? sara said nothing groundbreakingly new, kind of hard to gauge whether the market needed to be surpri

stephen walt of the kaiser report thanks for having it all right let's get right into it the fed has promised wall street that there is quote no limit to the amount they will print they are now buying junk bonds and c l o's that would be collateralized loan obligations thus bailing out j.p. morgan wells fargo citibank which own 81 percent of these what comes next even you know digging into the fed announced last week on junk bonds they're essentially bailing out any company that's a fallen angel so if they were a investor grade corporate rate it on a. shell to below investment grade which by the way every airline in the u.s. except for so west is no below desperate they could essentially buy those those parts the question is whether or not they start moving into things like equities or high yield bonds that are junk rated so you know that's they really proven that you know they're discounting crude investors at the start there's a concept that has been floating around for quite some time called moral hazard that is if companies make mistakes should we really bail them out of course covered 19 is a pandem

the federal reserve is letting wall street banks take on more leverage, to deal with the severe lack of liquidity. the fedng clear the move is for banks to expand balance sheets as appropriate, not so lenders can increase capital distributions like dividends. global news 24 hours a day, on quick take powered by bloomberg powered by more than 2700 journalists and analysts in over 120 countries. coming up, we hear exclusively from bank of america ceo brian moynihan on why he expects the u.s. economy to bounce back once the coronavirus health crisis is resolved. this is bloomberg. ♪ manus: this is bloomberg daybreak: europe. manus cranny in dubai with nejra cehic in london. a quick check on the markets. downs innged close italy and germany, there is concern about the duration of the coronavirus hit. our guest host has said he expects a deep contraction in the second quarter, then a recovery. brian moynihan, optimistic. theing at the money, in second quarter do you want to be long dollar or yen as your protective trade? do we test 1.3%? leverage,tends the wanting wall street banks to extend leverage. after th

the dow jones industrials are down on this news. you would think that wall street would have anticipated this, because obviously this was what was going to happen. let's talk about the head of the fed in san francisco, head of the federal reserve mary daley telling "the wall street journal" she does not expect a direct recovery, where we come back to where we were, what economists would call a v-shaped recovery, where we started here, this is us during the covid-19 crisis and then we return back up here. but rather, she expects a very slow recovery, piece by piece where we really don't see where we were before until maybe 2021. and marcus, a reminder as we talk about, you know, this concept, this concept of opening the country back up. it's a preparation, but for now, we are still in our houses with our dogs, and staying there to keep the curve flat. >> absolutely. we need to do what we can. thanks so much, scott. >>> google's proposed mega campus is now delayed. the san jose city council is set to consider the approval of google's downtown mixed use downtown development until sometime at the end of the year. that's around the diridon train station. for now the council is not expec

the fed went into high yield market. that is an historic change it is one that exposes the fed both to the embracement and on the other side on "the wall street" is the fed doing too much for markets or too little for main street or not. we are betting on the fed to go in and put a risk on. >> in terms of -- and you have pointed out to me, we talk a lot, mohamed, we talk on the air, we talk off the air you've pointed out to me that you are -- you holistically look at everything. you look at global economies, central banks. we specifically ask you about stocks and we put you into calling s&p up this much, down that much and so it's as much our fault as anybody's do you think this is a bear market i put you back in that position, you may or may not -- that may not be your expertise. you are a bond guy and you know about the fed but do you get the feeling that the stock market is underestimating the long-term effects of this in a way that it's drawing people in when they shouldn't be in because we're headed back down is that how you feel >> yeah, i do, joe let me explain why these themes matter look, we moved and had the fastest correction in hi

the head of the san francisco fed mary daley tells "the wall street journal" she does not expect a recoveryack to where we were what an economist would call a v-shaped recovery. we started here, went down to here and now we're back up to here. a v shape recovery. she doesn't expect that at all. she expects a very slow recovery that could come into 2021 until things are back to normal. you'll see that with conferences. that happened in san francisco. here's some video of one of the very last in san francisco, so important to san francisco's economy. now they're gone. this is the rsa conference, one of the last. it seems unlikely people will return maybe at all. conferences may be on their way out. we'll talk about the future of san francisco's big gatherings coming up at 6:15. retail sales have changed enormously. grocery stores are packed. many may not reopen. airlines will get their bailout after reaching a deal with the federal government. one condition they not lay off staff. passenger volume down 95%. airbnb has gotten a billion dollars so that it can stay open. this is coming from priv

uncertain as it could -- as it can be i think the fed has all of the information that we have provided on an ongoing basis, as to the median estimates of wall street economists with a 35 or 40% downturn what the fed does say, and i would like to read this, because i think it's -- it really speaks to how unusual the time is the ongoing publichealth crisi will weigh heavily on economic activity the committee will continue to monitor the implications of incoming information for the economic outlook, including information related to public health so they're watching the spread of the disease, the hospitalization rates, the infection rates, the news about the drugs. public health now is an absolute key to monetary policy >> all right, steve liesman. i know you'll be hanging in with us for most of this half hour and then through the press conference, but some market reaction, let's bring in bob pisani hello, bob >> looking at the headlines here as steve has presented them. he's right, there's no forward guidance at all. i'll tell you everyone i talked to on the trading desk, a little bit more on the pace of the bond purchases and i, covering etfs, i wan

fed provides $600 billion business loan infusion. part of $2.2 trillion. that's in "u.s.a. today." "wall street journal" puts it this way. fed's new loans are broadest ever. the federal reserve is going further than ever unveiling programs to lend directly to state, cities and midsized business that is have seen revenues evaporate amid efforts to combat the coronavirus outbreak. and the central bank would expand plans to backstop lending to large companies by supporting riskier bonds issued by corporations that have lost their investment grade status. the brookings institute. the fed chair spoke with folks there in a virtual type of event and here's what he had to say yesterday about the economy and where it might be headed. >> our emergency measures are reserved for truly rare circumstances such as those we face today. when the economies well on its way back to recovery and private markets and institutions are once again able to perform their vital functions of channeling credit, will but these emergency tools away. none of us has the luxury of choosing their challenges. fate and history provide them for us. our job is to meet the tests we are presented. at

. >> this is the challenge, this is where main street has got to meet wall street has got to meet the fed. so far we have not seen the integration of this. you still have millions of people hurting, really hurts, out of work, unable to get a job, companies gone forever. that part, that loop has not been closed yet. until that loop gets closed well-not have any hard answers. this really is, never mind the coronavirus this, is all about the psychology of america. this more than anything, in my opinion plays into the recovery. cheryl: heather, i mean, you know, we have to talk about the federal deficit. we're talking about the fed's balance sheet pushing 7 trillion. i have seen estimates it will hit 10 trillion next year. gary k. is looking 16 trillion. that is astonishing number, heather. also the federal debt being taken on this country, that affects the credit rating of the united states. >> it absolutely does but even people in this dire health crisis we have, larry kudlow as well as treasury secretary steve mnuchin and a republican administration, republican-led administration are sayin

the fed. really looking forward to that here in the next hour. right now one of my favorite people on wall streete federal reserve chairman john taft joins us and he wrote a wonderful book about the stewardship. and the fed chairman has come to the rescue and you understand lender of last resort. have they become fiscal provider of last resort? john: well, they certainly have made a statement to the markets. that they are willing to do hatever it takes, shock and aw imam tear policy, reach out to the shelf for every monetary program created during the last financial crisis and add to that more and do whatever it takes to prevent the financial system for seizing up as it threatened to do back in 2008 and 2009. and as a result, tom, as a participant in the financial markets, things are not nearly as dire as they were a decade ago. the system is still working. there's plenty of liquidity, lots of problems to confront, but they are problems that can be navigated over time, not problems that are standing at the edge of an abyss the way we faced in 2008 and 2009. this feels very different thanks in lar

the fe what would that look like? i've seen number of notes circulated ond wall street suggest thag the fed could maybe potentially get into equities if needed now but what is actually still in the tool chest >> well, let's count the dollars. congress proep rated 4 450 what the rshry is using to lever at the fed is equity sochlt they used $195 billion in today's program. so we can count out exactly how much is is remaining that would be 255. so multiply this times ten using the same leverage ratio. morgan, there could be another 2.5 trillion you can imagine the federal reserve finding a lot of interest in one program and making that bigger there could be other areas of the credit markets that it is not yet backstopped or providedly quidty for. it could get involved in that. the other thing to think about is say all this stuff has to be lengthened out in other words, say the shutdown goes longer. the fed would have additional capacity to do that. so additional markets. wider credit involvement and b possibility longer credit involvement. those would be the three ways i would think about how the fed could become involve

reserve year, but what are the risks of diamondback, even with some r-star expectations that many on wall street have about gdp growth and unemployment? actions wenk the fedave seen today have been nasically about ensuring an orderly market run debt securities. that will take some time to run through the system but i would not characterize our portfolio actions as diving back into equities. the bullortant to note market that's been in place since the end of 2009 has come to an abrupt, painful end. investors that were extended on risk, had not seen their own deals participate in the upside, likely experienced a dramatic drawdown. our view is that by raising fresh powder -- about a month ago come out of stability assets, getting to lower volatility alternatives such as cash, hedge fund to hedge fund strategies. now is an opportune time to look at those alternatives and position several basis points in risk, equities, reasonably assets that we think provide potential upside or a long-term investor. sanoli: that is interesting because watching the hedge fund numbers come in here, they are very mixed, all across the board. we are wondering whether investors wi

i think that the fact that the fed is structured in a way that allows the private members of the bank which does provide credit with wall street firms because they are the primary shareholders and so wherever the fed is today, there is a major flaw in how it was created and exists to benefit its members. and it is to help the greater economy and public but the reality if you look at the actions they are very visceral when there is a situation where the wall street institutions are in trouble or the is a necessity to help j.p. morgan chase or the institution that is part of the history and fabric of how it was created and benefited and continues to benefit from this implicit subsidy that's not just the fed but all of the banks provide the largest in their the respective countries, and i think that is a flaw. >> i will give you a few of the takeaways in case you fall asleep really early. politicians are good at never wanting to acknowledge that. some people win, som blame, some lose and they did a better job in this country. people whose lives were disrupted and was sense of self-esteem. they did a bad job of acknowledging that

since the intervention of the fed days so say in 1907 when the plunge protection team and alan greenspan came to the rescue of the bad bets made on wall street chicago. and ever since and we've had more and more and more unfair system it starts off a little bit unfair and as we see like a little change of direction way back then in history becomes a huge gap we see that with the wealth and income gaps and we see that with every single crash and the subsequent bailouts gets worse and worse towards the very wealthy and the connected so when we've already covered the trillions going to the banks instantly and the fact that the ordinary person is struggling to well you know waiting desperately for the stimulus checks to arrive to them the measly little ones you know when the fed is buying these collateralized loan obligations you have to realize that 81 percent of them are owned just by j.p. morgan wells fargo bank of america and citibank just those 4 banks own 81 percent of it so those are the guys getting bailed out by the fed in the mean. time u.s. housing j.p. morgan chase to raise mortgage borrowing standards its economic outlook darkens it

it's a little higher than some of the wall street estimates but lower, as you said, than the st. louis fedbout 32%. we had 10% during the great recession, about 9.35% before coronavirus started, 3.4% before. and the great depression we were at 24%. these are remarkable numbers, karen. i just want to talk about the fact we're not seeing similar numbers in europe. "the washington post" has an article entitled "how europe manages to keep a lid on coronavirus unemployment while it spikes in the u.s.." in germany, for instance, 650,000 employers notified employment agencies by last week of their intention to make use of the country's short-term work program. under the system, employees have their hours scaled back and the government pays them up to two-thirds of their normal salary while the employer pays little or nothing. once the employer is ready to pay full wages again, everything returns to normal and there are no layoffs. there's similar programs in place in denmark, where people are staying home and still getting paid by a government system. we have much more complicated systems here in

the note that has wall street talking today. our near term downside is no longer likely. fed and congress have precluded the prospect of a complete economic collapse. he's not as negative as was. where are you today as we watch the markets come off a big week? >> let's think about the sentiment we carry the high expectation there would be a significant amount of loss of life. we have seen a significant improvement in that expectation. markets responded. markets are responding to the health care numbers. as i see the market now, i still believe the lows are protected by strong support between 25.50 and 25.75. i do not believe you get the opportunity to buy at the lows again. the market never gives you that opportunity. you are running into resistance now from prior gaps that we had in the market. today we have a weak tape. within that, we have a very constructive development that's the return of leadership back to amazon, back to apple, back to netflix. back to mega cap technology. amazon is going to trade in the next few days to an all time high remarkable >> steve, you've go

the date ofs cut starting may 1. we are watching nikkei futures here it asian futures are higher as we look to wall street ending last week on a positive note. central banks, the fedfore that, the bank of japan today. off thehe boj is taking big week. policymakers are expected to take steps to contain the financial and economic damage caused by the coronavirus. kathleen hays is here with what we might see. .irst up is the boj if the bank of japan moves towards a limited bond buying, how much will that help the economy? bigleen: that will be the question because we learned from nikkei news probably what they are debating going into this meeting is a couple of things. this pledge for unlimited -- doubled corporate bond purchases. surveyed inmists tokyo said yes, you will see more steps. bnp paribas was reported as saying what they have to do is avoid looking less aggressive than the fed and european central banks. if that happens, if the others are more stimulative, this could make the yen stronger. even though the federal reserve has boosted its bond buying and the size of its balance sheet, the boj bond buying is the equivalent of 110% of gross domestic product of

the head of the fed in san francisco mary daley, tells "the wall street journal" she doesn't expect a recovery back to where we were. what the economists would call a vid v-shape recovery. we started here, went down to hear and now we're back up to here. that v-shape recovery. she doesn't expect that at all. rather she expects a slow recovery into 2021. now it's speaking of recovery, not that that san francisco was packed with conferences, the moscone center. this is what life looked like not that many years ago. but even after some of the shelter in place rules back, i expect it will be quite some time before anyone attends a packed business conference. nick mehta loves business conferences, loves them. before i let him talk i want to show you what he looks like at a conference. >> who's excited? who's fired up? >> the reason nick is on stage is because he's the ceo. that's not going to happen obviously. it will happen online instead. nick joins me. i think nobody is more disappointed than nick. my son's school teacher on youtube. i have ten views but 60 students. how can you get peo

already out there joining us now is glenn hutchins, hee is director at the new york fed he wrote an op-ed last week in the "wall streetary cohn entitled the fed's new mission to save the economy. he also serves on the board of new york presbyterian, which is in the hot zone right now. give an update on what you can tell us on what's happening here in new york. some of the numbers we've been seeing have been fairly optimistic in terms of hospitalization numbers dropping and intubations, too >> so, one of the leaders of the hospital system in new york said this week that we're at the end of the beginning i think that's important as we've talked through this crisis, we -- i reminded each time we talked this is a health care crisis leading to market and economic consequences. we need to start with the health care crisis. it feels that statement makes it feel to me that the first phase of this crisis, which was flattening the curve, is now in hand we now have to move on to the phases deploying testing, continuing to rebuild the health care capacity, continuing physical distancing, contact tracing, and then the therapies an

the fed has pumped close to $10 trillion into the wall street banking community and that's why stocksave stabilized. these small businesses have not stabilized. unemployment is still spiking up. what they are worried about is when this is over, say joe biden wins, say elizabeth warren is appointed to some cabinet post, let's just say she does an investigation into the hedge funds that got the money, and she starts to have show trials which is very possible given where the democratic party is, you get what i'm saying, this could get really nasty. steve mnuchin coming into the treasury, he should be putting a stop to this. robert wolf makes a good point but check the tape on what anthony scaramucci said. i believe he was trying to say that as robert's friend and partner, i believe he was trying to say this is a legitimate use of funds because hedge funds do employ people. yes, they do. but this program was not made for them. back to you. liz: well, charlie, this is infuriating and it's not just democrats, it's republicans who should be upset. this is taxpayer money and if you are conser

big news from the wall street journal, they had a great story saying that carnival got a bailout effectively from the fed after they announced some of those liquidity and loan programs available. butare still about 70%, today rising about 8%. due to those fed programs, carnival was able to borrow as low as 11.5%. hedge funds were offering rates exceeding 15%. one of the companies we are following that benefits from the fed liquidity program. vonnie: taylor riggs, thank you. the coronavirus pandemic is leaving millions without jobs, struggling to keep up with loans. withoke exclusively discover financials ceo about their outlook for financial recovery. >> i think there will be hopefully a short-term disruption. as we think about the programs we are putting out for our customers, we are modeling those on the type of relief that we provide after a natural disaster , where hopefully people can get bridged back to employment. i think there is a high risk of a more traditional recession going well beyond travel, retail, restaurants, the sectors hit hardest now, and a longer recovery. >> some of the expectation

carnival jumping after the wall street journal had a report early this morning that they were bailed out by the fed. they were able to receive much lower interest rates after the fed liquidity programs were announced than they were able to get from some of the hedge funds. nvidia also up after completing another acquisition today. it is making them a major force in data centers. we know they have been a key area of strength for a lot of these chipmakers. biomed is down after they were downgraded to market perform. there are some concerns by that analyst that the lower sales estimates don't include some of the negative covid-19 impact. finally, on an optimistic note, quest diagnostics upgraded at citi due to potential for a new lab testing program. lab testing will benefit as we all take steps to continue to reopen the economies so that -- reopen the economies. so those are some of the names we are looking at. vonnie: up next, its -- up next, tough start to 2020. we will get more. this is bloomberg. ♪ ♪ guy: live from london, i'm guy johnson, with vonnie quinn in new york. this is the european close

so we have stimulus out there, a lot of monetary stimulus from the fed which is definitely helping wall street lot. wall street guys couldn't make a lot of money out of this. the stimulus to the small business community, and individuals is a lot more complicated. the tracks, many of the checks just aren't there yet. you know, here's what a lot of people called us, the markets could bounce back on this, we have a lot of liquidity in the financial system right now. it's the main street economy they could have a real problem. what they're talking about his massive restructurings and energy, the entertainment business, casinos, who is going to want to fly an airplane to travel to vegas and stay at a casino? that's sort of behavioral stuff is going to change. the energy business is going to get hit hard by this. you know, we are in a recession, that means there's going to be downward pressure on oil and the global impact between russia and saudi arabia to stop the price were. but still, people say the price is $25 or $23. from what i understand, oil is being sold at $10 a barrel, in reality, and a

bonds, that is fourth largest two week total on record according to nick at "the wall street journal" the lending programs at fedble for companies to issue debt, even without the central bank purchasing a single security. what the fed has done allow this is to borrow words of someone on twitter they've allowed market to price actually credit risk without having to factor in a liquidity meltdown, the fact companies can go out raise money is astonishing proof the fed is getting it done. >> i think there are a handful of companies you are absolutely right, that have benefited from this issues and they are able to refinance which is great because we have a massive wall of debt that needs to be refinanced this year. but i come back to the point that junk yields started year under 5% they are 8 1/2% today. so ford and other companies may be able to get off some debt here but there are a whole slew of companies out there that are not going to be able to service debt at you know 350 basis points increase in yield. that will come to fruition you are seeing again i come back to downgrades because that is first thing you a

over 16 million people just filed for unemployment and wall street really wants everyone to go back to work why is it that the market soars? the fedry, the congress, all doing stuff but it's not getting to the people who need it most. why is wall street so happy? >> well, look there's two things going on. there's what the federal reserve can do and the treasury can do and then what science and health experts can do. right now this whole thing will ultimately be solved by science. it will not be solved by the fed or treasury. the fed and treasury are trying to create a buffer, a support system so the entire economy doesn't go under. the way they're doing it, though, unfortunately, and i do have to say i've advocated for a big approach for as much lending as humanly possible but the way they're doing it, the structure of it so far is going to create -- the haves and have nots, i'm afraid all over again because it's a first in line system at the moment. and the people who are able to get access now to these loans and grants are the people that have the smartest lawyers, the smartest advisers and accountants, the small business owner,

08 and '09, the fed would be directing lending to specific structures for small business and put that on its balance sheet or directly lending, directly lending to municipalities wall streetas completely taken out of the municipal bond facility under very specific rules this is the fed that's gone a lot farther than anybody would have contemplated back in '08 and '09. i think your question is a valid one. how political will this get. >> that phrase more power and less independence is really telling. there's a lot of talk about how inflationary some of these moves might be not in the sense of the trillions of dollars of expansion but the chronic shortages in some cases. do you have to bid up labor in order to get people back to work, entice them with higher wages? i'm curious if you would give any credence to those ideas. it's more deflationary slow down we had to worry about. >> he was very specific on his thoughts about this shock in familiar that it's a disinflationary shock. the demand side is far more important than the supply side that's first order the question is what happens afterwards how quickly do we rebound. h is demand coming back faster or slower than supply

"the wall street journal" wrote this editorial called "bailout the states?" they said companies that borrow from the fedy have to meet conditions including limits on compensation and the same should apply to state governments. bailout conditions should include cuts in nonessential spending, immediate and permanent reductions of public pension benefits and other reforms put states on the path of fiscal recovery. do you agree with that? >> no, i don't. the reason i don't is simply just our state was killing it. surplus and surplus and surplus. and this is completely devastating. there's no way around it. this virus and what's happened has destroyed the revenue. we have got some way be able to backfill the revenue or you're going to have state after state in a lot worse condition than we are and it will be devastating to west virginia. if we can't backfill the revenue, i think it's a terrible mistake. >> martha: all right, we'll see what happens. thank you very much, governor justice, and west virginia. best of luck to you and the good people there. >> martha, thank you. >> martha: president trump putting

since the intervention of the fed days so say in 1907 when the plunge protection team and alan greenspan came to the rescue the bad bets made on wall street chicago. and ever since and we've had more and more and more unfair system it starts off a little bit unfair and as we see like a little change of direction way back then in history becomes a huge gap we see that with the wealth and income gaps and we see that with every single crash and the subsequent bailouts gets worse and worse towards the very wealthy.

my wall street sources who are dealing with the treasury and dealing with the fed and also yesterday th the financial services forum, that is a lobbying group for wall street, they're basically telling, they're basically telling us simply this, the trump administration, congress, they're definitely going to do another stimulus package. how it takes shape no one knows. the best bet is they will reload the small business loans going forward. because those loans i guess kick in on friday, something like 300, $400 billion. they think they will run right through that. that will be reloaded. there is whole bunch of stuff on the table to bail out cities and states. there will be a lot of money pumping into the system. clearly a second bailout is being discussed. clearly in congress, wall street, how it should take shape. clearly it was discussed yesterday at the financial services forum and their meeting with the white house. that is a big lobbying group. one of the interesting things about the meeting, yesterday, neil, one of the big bankers that dialed in was jamie dimon, ceo of jpmorgan c

since the intervention of the fed days so say in 1907 when the plunge protection team and alan greenspan came to the rescue of the bad bets made on wall street chicago. and ever since and we've had more and more and more unfair system it starts off a little bit unfair and as we see like a little change of direction way back then in history becomes a huge gap we see that with the wealth and income gaps and we see that with every single crash and the subsequent bailouts gets worse and worse towards the very wealthy and the connected so when we've already covered the trillions going to the banks instantly and the fact that the ordinary person is struggling to well you know waiting desperately for the stimulus checks to arrive to them the measly little ones you know when the fed is buying these collateralized loan obligations you have to realize that 81 percent of them are owned just by j.p. morgan wells fargo bank of america and citibank just.