expectation, the fact the bank of canada went deep in its rate cut, it might inflame what we have seenthe loonie falling on the news of the bank of canada dropping basis points. the light to the upside means the value of our canadian dollar did drop off dramatically. a lot to digest today. line with the u.s. federal reserve. they applications for this economy. if the are any doubts he was concerned about the spread -- or followed from the coronavirus, and are not today. he is all in on stimulus, not only cutting interest rates, matching the fed cut on tuesday, but taking it one step further and saying he is ready to cut again if needed if the economic outlook deteriorates. this is dramatic reversal. he was governor of the bank of canada, one of the few central bankers that did not cut interest rates last year. that left canadian policy rate to the highest among industrialized nations and the reason he was reluctant to cut wasrest rates up until now because canada has a unique household debt levels, official did not want if you will more data, they did not want to feel the housing marke

meanwhile, the bank of canada cutting 50 basis points. economists were looking for a quarter-point cut, but there were economists anticipating this. 1.25% is where the rate stands now in canada. the bank of canada a little reluctant to cut this much given the heat in the housing sector, but that is what they have done, perhaps in order to keep up with the federal reserve. let's have a look at services, coming in strong at 57.3, better-than-expected in february, and much better than january data as well. services still healthy in the united states. let's take a look at the canadian dollar now. we had been stronger versus the u.s. dollar, now weaker. no huge moves just yet. we will give the market time to digest that. once again, the bank of canada cutting 50 basis points. a little trepidation given the heating in the housing sector. let's move to the u.s. picture. we are getting a bounce today, and you can be sure that services data is going to do nothing to do away from that. the health insurers are at the top of the pack, up 12% for some

still ahead, my exclusive conversation with bank of canada's stephen poloz. this is bloomberg. ♪ vonnie: time for the bloomberg quick take. is the coronavirus a pandemic? it is more than just a matter of words. we look at why it matters and what it means. a pandemic occurs when a new infection mushrooms across continents. it is a bigger threat than an epidemic which is more constrained. the world health organization says so far there is no uncontained global spread of us disease. if the who starts talking about the coronavirus as a pandemic, it could lead countries to roll out higher-level emergency plans. is known asol social distancing, involving closing schools are having employees work from home. that is already happening in some places. ae last virus designated pandemic was the swine flu in 2009. it affected an estimated 61 million people in the u.s. alone. worldwide, swine flu is estimated to have killed as many as 575,000 people in the first year it circulated. that is your bloomberg quick take. amanda: this virus grabbing the attention of central banke

bus co-host and of course cryptocurrency analyst ben swan ben thank you so much for joining us today and you know when we talk about federal bank response as well i mean the bank of canada just friday afternoon as well cut rates to point 75 percent so there varies a lot of action going on and it's moving so so fast as this number one economic crisis if that's what you want to call it is going on as well as the pandemic of the coronavirus so bent the fed announced trillions of dollars worth of new capital injections to calm treasury bill liquidity issues and boost economic activity amid coronavirus risks we know you're not a fan of central banks propping up markets kids being what we have seen over the last few days doesn't the fed have to do some more and what exactly are they doing right now to prop markets up yes so i don't think the fed is the answer certainly but you are correct that markets right now feel like they need to help in a lot of ways that what we saw on friday afternoon was very interesting you said here in the lead up up almost 2000 points for the dow 'd on friday 'd which is a huge job about 10 percent back up still know the racing you know all of the

that is after the bank of canada dropped interest rates by 50 basis points. it was anticipated the bank of canada would drop. , and manybasis points strategists saying this was to keep up with the federal reserve . you can see the canadian dollar $1.3394.t guy: today, the european union coming out in warning of recession risks both for italy and france. some speculation as well that italy is weighing shutting universities and schools. 600, we of the stoxx are up around 1%. around decent volume today, which is worth noting. netting 64 is where we are currently trading on the german ten-year. we continue to see a bid coming into the bond market. we are waiting up to see whether the bank of england is going to follow the fed. we are waiting to see whether the ecb is going to deliver further monetary stimulus as well. maybe 10 basis points from the ecb. the bank of england has the potential to do a little bit more. the incoming bank of england governor talking a little while ago, certainly talking about the role fiscal policy could play, particularly when it comes

manus: in terms of central bank response mechanisms, we have seen the aussie, the bank of canada, alongfed doing its meeting of 50 basis points, oft is the probability getting sterling into this, -- what is the risk now for bank of england to join this? are they bounced into it? >> the bank of england has been of -- has been one of the more hawkish central banks in the previous month. we have seen dovish comments from the bank of england. there is a high risk that the bank of england could join and the risk -- when you have other central banks setting rates, you then have a pressure of appreciation on your currency. then cut ratess in the bank of england does not cut rates are you have this condition. at this point central banks do not want to do a policy response. the best thing to do for them is to be concerned with that risk and cut rates. manus: you certainly don't want to be left out on the tail risk on your economy versus everybody else's. our economist, my debt -- my guest host stays with me in london. the world celebrate international women's day yesterday. today we see high-pro

. >> the bank of canada following the u.s.aid cutting interest , rates by half a percent as the coronavirus darkens the economic outlook around the world. officials saying they would act again to reduce rates if necessary. >> this is a pretty dramatic reversal for a large. -- pollard. he was one of the few central bankers who did not cut interest rates last year, but clearly the concerns around coronavirus, the concerns around the global economic outlook have now begun to outweigh any financial stability concerns the bank of canada may have had. mark: capitol hill negotiators have agreed on a $7.8 billion emergency spending bill to fund the government's response to the coronavirus outbreak. the bill provides much more funding than president trump requested from congress last week. >> spending bill and stimulus. stocks rallying, bonds rallying on the hope the government will fight the coronavirus. >> haven't we seen this movie before? up 4% monday, went down, up again, down on balance, we are , higher than we were on friday, bu

i do want to ask you, the bank of england, ecb, waiting for action from them. we got bank of canada today, a 50 basis point cut. could additional action from the central banks help the market higher? will we get to a point people are concerned they see something that we don't see? >> well, you get to a certain point with monetary policy where you're pushing on a string. you just can't stimulate anymore. then they sort of are saying that they're they're expecting fiscal policy to come into play but the coronavirus called that bluff. they're doing it early. they're maximizing. european central bank and bank of england will follow suit. one of the banks can't differentiate from other banks. that causes problems with capital flows. charles: exactly. >> they're stuck with that. and then the fiscal response has to come in early. i think we're going to have highly liquid markets here going forward. as long as we're not shutting down you know, mass business and schools in the united states, than i think the worst-case scenario is priced in. we have liquidity to spare. charles: herman cain w

the fed joined the bank of canada, bank of england, bank of japan, ecb and the swiss national bank indow is on track to plunge more than 2,000 points or 9 and-a-half percent right out of the opening bell this morning on losses of the 30 stocks that make up the dow and that of course will mean that we could see a trading halt right out of the gate. global markets are also selling off this morning, european indices are red across the board. countries in europe are on lockdown. there is a different strategy in the u.k., however. where they're encouraging people to go out but spain and france lockdown. germany as well. the fq100 down 363 points right now, 6 and three quarters percent. the cac in paris down 382 points, 9%. and the dax index in germany down 730 points, that's 7.8%. asian markets also under pressure. we have economic news out of china overnight and the numbers are bad. industrial output for the first two months of the year plummeted 13 and-a-half percent. retail sales over january and february down 20 and-a-half percent. in japan, the bank of japan is boosting stimulus by bu

korea,, bank of canada, japan. , which bank chief bank chief- deutsche economist torsten slok still with us. 2008, all the banks sort of cut at the same time. is it reasonable to expect we will get these cuts? torsten: we are really flying blind because this is the story that only evolved 10 days ago. two weeks ago, we were at all-time highs, then we are sitting here. in some sense, we need some evidence in economic data. this cannot just be anecdotes from companies that things are deteriorating. if it warrants such a significant reaction. i think we are still seeing monetary policy around the world in wait and see mode. even with these targeted ideas of supporting specific sectors and industries, it is something where we need more data and evidence. scarlet: assuming you can trust the data, it sounds like -- it seems like china is darting to recover. the number of cases is fewer than what we are seeing outside of china. of course, the country is hard at work trying to get people back to work. i look at the bloomber

it's also announced co—ordinated action with the central banks of canada, the uk, japan, switzerland,ials say they're working to improve waiting times for health screening, after chaotic scenes for returning travellers at some american airports. the trump administration's decision to include the uk and ireland in its european travel ban comes into effect on tuesday. for more on the us level of preparedness, let's go to david blumenthal, president of the commonwealth fund, an american healthcare research foundation. thanks very much for being with us. how ready and how prepared is the us? i'm afraid we are not very well prepared. we are getting better prepared. we are getting better prepared but at the moment, we are not well prepared. why is that, what needs to happen? first, we need to be much better at testing. we are way behind the rest of the world in implementing a testing regime. we also have in our public health capacity for years and that leaves us capacity for years and that leaves us ill—prepared for a public health catastrophe like this. so what needs to happen now, what ar

. >> investor attention today turns toward the central bank of canada due out at 8:00 today in the treasury market, the benchmark note .944% the first time it has dipped below that 1% mark two-year note .067%. very historic moves with the u.s. treasury market now around the world, in asia, early trade there. a little mixed right now the hang seng down about 1.25% a fairly mixed picture what may be more interesting is the more muted nature of those moves. you can see fractional gains as opposed to the one, two type we have been seeing let's spin that globe around towards the european side of things we can see, predominantly green. the german dax up, ftse up and dax up as well >>> a huge night for former vice president joe biden. sweeping texas bernie sanders maintaining vermont, utah, colorado and favored to win the big prize of the night, california. tracie potts joins us now from washington, d.c. what do we know for sure and what is still up in the air? >> we know it was a big night for joe biden including the unexpected win in texas. we know that california is still counting votes and may

we have got the rate cut from the bank of canada.et global market coverage from around the world. great to see you all. we are seeing green in asia. our asian equities just playing catch-up? when you saw that 4% gain, it was likely we were going to move higher. are back at levels we have not seen since the middle of january. we have seen the index respond quite strongly as the fed rate cut puts the stimulus back in china's hands. lower i is likely to another 10 basis points. fred newman says the outbreak requires the fed and china to deliver stimulus. see the msiyou will 300 having another very solid session. nejra: the rupee is hovering around its lowest levels. what is driving the decline? seen nervousness shaping sentiment. the indian markets were behaving slightly off. they started lower. because of a bailout package being readied. there is a bit of an upsurge in asian equities, but otherwise, equity markets have been lower for the last few days in the last hour, markets have turned bit. yields hit record lows yesterday. what are

bank of england as well as with the reserve bank of new zealand. the highest rate amongst all these massive central banks is the bank of canada although jerome powell say he does not think negative interest rates would work in the united states. that is where we are right now with the ecb in the negative rate territory. the ecb did not cut alongside many of the others who cut but they had monetary tools to combat the coronavirus. we will have to see how these u.s. markets open up today given this massive surprise from the fed. yousef: lovely chart. thank you very much, annmarie hordern, with a chart that matters to let's get back to sophie huynh from societe generale. you look at the cascade of cuts from the fed to the boj and investors have been relaying that they are spooked by a what the central banks might be seeing that the rest of the world is not seeing about the impact of the coronavirus. sophie: [no audio] nejra: sophie? sophie: yes. [no audio] yousef: sophie, can you hear me? sophie: i camp what was your question again? -- i can. what was your question again? yousef: what are these cuts we are seeing from central banks around the world? t

permanent swap lines with the fed, which includes the bank of japan, the bank, the european central bank, and the swiss national bank, and also the bank of canada. that is basically it, but there is suggesting that there is very strong demand for dollars out there. we have seen a little but of movements in the market that may asked -- that may suggest some pressure easing, but it is hard to say. alix: with the dollar index still at 102, it doesn't feel like we are off the top in a substantial way. what do we have to see for everyone to breathe a sigh of relief? michael: i need to -- i think you need to see it go back down for several days, maybe to the mid-90's level it was at before. i'm not sure where it settles out because we go beyond the demand for dollars to the outlook for the economies, and that will be influenced not just by what the fed is doing, but what congress ultimately does, what other stimulus measures come from european central bank and the chancellor the exchequer later today. one of the questions i think a lot of people are trying to understand is when do some of these programs kick in. clearly, the dollar funding story is r

central bank coordination over the virus outbreak is extremely high, at least according to the bank of canadanor. the central bank followed the fed in cutting by 50 basis points. he says there is a premium to acting in concert on policy but admits that some central banks have more room to maneuver than others. the coronavirus appears to be straining the u.s. health system . medical workers are warning of supply shortages, and hospitals are uncertain when they will be able to test suspected cases. lawmakers are warning the government will fall far short of its goal of testing one million people by the end of the week. russia and turkey have announced another cease-fire over the deepening crisis in did, syria. presidents putin and erdogan are hoping to patch the increasingly fraying relationship between their countries. the pact fell short of what president erdogan was after. it did not establish a new zone of control to resettle millions of refugees. global news 24 hours a day on air and quicktake by bloomberg powered by more than 2700 journalists and analysts and more -- in more than 120 coun

. >> the bank of canada following the u.s. cutting interest rates by half a percent as the coronavirus darkens the economic outlook. officials saying they would act again if necessary. >> this is a traumatic reversal. of the few central bankers who did not cut interest rates last year but clearly the concerns around coronavirus, the concerns around outlook have now begun to outweigh any financial stability concerns. hill negotiators have agreed on a $7.8 billion spending bill to fund the response to the coronavirus outbreak. the bill provides much more funding than president trump requested last week. >> spending bill and stimulus. theks rally, bonds rally on hope the government will fight the coronavirus. >> haven't we seen this movie before? up 4% today. on balance, we are higher than we were on friday, but it has been a bumpy ride. it is going to remain a bumpy ride. there is still so much uncertainty out there. i find it difficult to credit we are going to ascend. ♪ >> ministers conclude their meeting in vienna, agreeing t

number one, the fed would like to have a few of its colleague central banks come along the ucd, the bank of japan, the bank of canada meets tomorrow. it is likely to cut. we suspect there will be more easing measures over the next few weeks. so that's the first one. and with respect to traditional rate cuts, you have to consider, the market to the end of this year was implying fed funds would be about 55, 60 basis points around a half a point by the morning fed. so for the fed to deliver another 50, it wobble more or less in whine the margaret people thought, great, now i'll refinance. overlooking that it could have risen. will they get a tail wind? will they get help from the refinancing boom or other housing related it because of this >> absolutely. not only that but the engagement with investors leads to us believe the trading revenues for the likes of morgan stanley, city bank, it will all be higher refinancing will accelerate with rates being this low and that will help names like truist or a fifth third or a citizens financial. of course chase, jpmorgan are our biggest. i would point out, remember our banks ge

after that g7 finance chiefs call, the fed asked nobody else, the bank of canada is widely expected to today. the market is pricing in more from the fed. so is donald trump if you look at his twitter feed. the market wants 25 basis points in march and many on the street are expecting 100 basis points for the first half of this year. depending on where the fed moves, that is where we will see the yield go next. great work. annmarie hordern within the chart that matters in new york. coming up, emerging market volatility. mark mobius from mobius capital partners joins nara and myself. 6:30 a.m. london time nejra: this is "bloomberg daybreak: europe." snapshot of how the markets are reacting to historic intra-fed cuts. bonds sub 1% could they get to zero? futures, dollar-yen is on the move, the bank of japan is said to mull cutting. will they get a bazooka from opec plus? i will tell you friday. joseph, i want to get straight to the fed action. a 50 basis point cut, and some would say that was the bazooka. your assessment of a 50 basis point cut? was it a bazooka enough? how things play ou

to your question, we expect a lot of other central banks to be cutting rates. we saw the bank of canadaf australia this week. we should see other emerging markets, develop markets reducing rates over the course of march. we will see quite a lot of that. haidi: we have seen the aussie testing the 2009 lows. would you see the most destruction and some of these commodity exposed risk currencies? zach: not necessarily. that is what we saw the first time around when the virus was treated by investors as a china shock. something that was concentrated in china and therefore negative for commodity demand. now the virus shock has gone global. western europe, north america, both dealing not only with spillovers from china but direct effects from the coronavirus outbreak itself. that makes the currency outlook a bit more mixed. it could mean the dollar weakens versus some of those commodity producers. if the domestic economic effects are more severe. it is going to depend on how the coronavirus outbreak is evolving around the world, how the currency markets are going to react to it. haidi: we have

the fed, bank of japan, ecb, boj, bank of canada and swiss bank will use swap lines during the financialsis the boj is expanding its purchase of etfs and corporate bonds in an effort to stabilize markets there. joining there is boris from fx strategy at bk management and a cnbc contributor boris, we haven't seen you in quite some time. i'm worried, now we are seeing you, we're in it. >> i stand to the world and i'm on tv. >> what are you thinking this morning, boris >> the problem i think, this is wore and as usual the generals are fighting the last battle this is not a financial crisis this is a consumer and small to medium crisis up all the prescriptions are wrong. doesn't matter the fed added yesterday. the problem is to alleviate the consumer you have to do some very, very crazy policies we couldn't even imagine two weeks ago. a couple of examples that are out of the box thinking. we literally need to do probably, as everybody is talking about, helicopter money. $1,000 a week for maybe six to eight weeks to every tax paying worker in the u.s. because the other thing you need to do is

of timing. the other central banks, bank of canada, rba coming up this week, more than 25 basis points price in ose central banks as well i can't see them doing any more than that because most of the central banks don't have much to play with. >> of all the statements we've gotten from powell, lagarde, did one surprise you >> no. i think that was exactly what was expected or should have been expected i think the g-7 finance comment that we should get tomorrow will say they're prepared to act. that's entirely, you know, a standard playbook in my opinion. then i think it's just exceeding the market expectations, which is going to be so difficult. >> finally, jeff, you say one of the things you're watching is consumer confidence. in this environment, what do you think is the key to that >> i think containment i think issues of certainly there's some hoarding that went on over the weekend. i think the more the consumers can feel that our governments are in control, that this is not going to spread wildly around the country, will be a beneficial thing to consumers. right now we have more of a supply

canadian dollar weaker by about 7/10 of 1% after the bank of canada reduced its interest rate to 25 basis points. the prime minister self-isolating over here, the health secretary self-isolating. we are all self-isolating. the brown story in the market is done and dusted. we go into a weekend where traders do not want to take risk. terrible numbers overnight out of spain. u.k. numbers continue to climb. numbers around the world of those infected and the fatalities continue to rise. that story is now taking over from that meal a we focused on so much over the last couple of days. european stocks at session lows, approaching that 300 mark with a bid back in the bond market. -50 in the german ten-year. notdebate as to whether or can european bonds risksharing care the germans do not like that idea. a bid on the pound despite what is happening to the prime minister. brent crude once again taking a big knock as we refocus on the economic impact of what is happening with a virus, trading 24.66. vonnie: two fed presidents offered up their forecast for the fed economy, contracting and rebounding.

the bank of canada probably cutting on wednesday. rba likely to cut overnight. the question is 25 versus 50 basis points. there is easing heading into the system. even the fed cuts from last year are still percolating through the system. this is why the fed has repeatedly signaled that the economy is a mostly healthy footing, so they are willing to watch and wait for some impact on the data. vonnie: how unusual is it for policymakers, monetary and fiscal, to be on one phone call? carl: we saw this during the financial crisis. it speaks to the extreme gravity of the situation. just a note of that call, central bankers joining in, is a big part of the rebound in the risk appetite we are seeing today. but of course, we are trading on headlines. pivot on as could dime. vonnie: thank you so much, carl riccadonna. shares of twitter surging. reports over the weekend that elliott management is pushing for changes after taking a $1 billion stake. those changes could include replacing founder and ceo jack dorsey. to talk more about the story, we have kurt wagner from san

of dialogue, cooperation, coordination amongst global central banks. we have seen a number of central banks move. we don't all have to move on the same day. fed,ba, bank of canada, bank of japan, emerging markets collectively these measures will have a significant impact. there is a fiscal component of this, a very important fiscal component of the response and a need for as a complement to what the central banks can do, targeted fiscal policy which is why things like the budget later today are important. you expect the shock to be short. [indiscernible] gov. carney: there is no reason for it to be as bad as 2008. if we act as we have in different there is that targeted if we act as we have and if there is that , i will space reemphasize that the private sector has a very important role to play. we are encouraged by the early signs in terms of major institutions indicating flexibility, but we will be the , we will bee clear monitoring closely the response to the very considerable additional flexibility we have given to the system in terms of capital and funding certainty on top of liquidity. those buffers, i agree with the governor, those are there to be used.

swiss national bank, bank of canada, england, and japan, and the european central bank joining in withements on dollar liquidity. many of the retail stocks will be hit, including apple, closing stores outside of china. important for the stock market, the u.s. banks will suspend the program from here on in. back to you. >> it is remarkable when you see the numbers expected to open in the low, that the president on friday tweeted out and was boasting about how the stock market rallied for a couple hours with the significant number. here we are again, expected to start the day in red. you'd think someone would say, mr. president, we're not in the clear. this is not turned around. no indication yet from the president he will do so. karen tso live in london, thank you. appreciate it. >>> coming up next, look at axios' one big thing. >>> on "morning joe," with the u.s. under a national state of emergency, the coronavirus pandemic is further impacting public life. local officials around the country announce new measures to reduce the spread, including here in new york city. andrew cuomo and b

of the economy. flights.anies banning that's all playing into it. the travel industry is taking a hit. reaction,central bank the bank of canada in more than four years. what a turnaround for the governor. >> not just for them. for everyone. the bank of england is probably going to be next. if you look at pricing in futures. we've had the fed up cycle. we forgot the rba. coming up next, the bank of japan, the ecb, the bank of england, and april, the rba again. pretty much across all those banks i mentioned, markets are expecting a rate cut. larger in new zealand, the fed is going to follow up again based on fed policy. what has not been talked about as much and given all the spirit -- fiscal stimulus, we know will be severe this quarter. what a lot of the policymakers are trying to do is avoid and prevent their economies from contracting. when the health scare goes away, economies can go back in track more easily than otherwise. >> when it comes to the stock market, volume has been picking up. how significant is this? >> for the last time in the -- on alumes there five-day basis, volumes are pretty much of the highest level si

we will talk about what happens next with the boe, the bank of canada, etc.. guy: did jay powell explain why this move will address this problem? he admitted this will not address supply chain problems, this will not stop the virus from spreading. peggy: it was clear the fed was saying we are doing what we can to create more liquidity in the system. banks continue to provide credit to small businesses. iswas clear today that it coordinated fiscal policy that will be able to help most in the situation in terms of the coronavirus and the health policy. health experts will be what is inded in terms of the -- terms of helping a situation that is a public health crisis. guy: -- david: he went while out of his way to say this is not a political decision. at the same time, steven mnuchin was on the call. now we have the president saying that is nice but that is not good enough. peggy: that is nice. trump tweeted he thought the fed should cut even more. there was a hearing this morning where he seemed to be positive in terms of what the fed was doing. as jay powell sa

we know the bank of canada is meeting tomorrow. they had an excuse to way today if they want to. the ecb, i wouldn't be surprised if we heard from them in the next day or so. the bank of japan probably isn't going to do a lot but issue some reassuring statement or something. vonnie: does this impact confidence? if so, in what direction? it clearly is ba for ust to be growth. john: that is something to be concerned about. what does the fed know that we don't? the answer is usually nothing, that most of the information is out there. it does have potential for a negative confidence reaction, except we have learned through this response to the financial crisis almost 12 years in the learned thator, we the fed response, the equity , the fedes down reverses course. this fed has a bigger put than either the yellen or the bernanke fed. i think the markets have pushed the fed to it. carl: i would push back against that a little bit because i think during the financial crisis, there were plenty of times that the fed did know something that wasn't broadly to the market place. so the fed may

i want to say we do have bank of canada tomorrow. we'll see if they cut rates. then we've got ecb and bank of england next week. we're watching all of this very closely. we're watching minnesota mining and manufacturing, also known as 3m. they make the face masks. they're falling to a multiyear low ahead of vice president pence's visit on thursday. kristina. what is going on? kristina: we're seeing massive part of the selloff. we know they signed a massive contract with vp pence. they will make 35 million more masks per month. that created a huge up swing in the share price. 3m is plummeting as the we see across the board the dow is down 721 points. the stock for 3m is coming closer and closer to 50 week low which is $134. we talk about 3m. i want to continue with the coronavirus theme right now, uber, uber seems a little bit of a bright spot. we her people may not want to get into unuber or lyft vehicles or go to shows yet the stock is climbing higher. has to do with analyst note from needham. we acknowledge the airport ride could hurt near term but management s

i believe the bank of canada meets tomorrow i believe expectations are that you'll get a rate cut out of them ecb would be a week from thursday i don't know they'll wait until then, but they may provide another rate cut then in addition to other measures so i don't think the last shoe has dropped in the policy response from the g7 nations >> thank you very much mike, gregory and steve liesman. appreciate it. >> with stocks near the lows of the session, we've seen some extreme moves in ten year yields as well. moments ago, it was 0.9% flat. the dow has eraseded much of yesterday's snap back. let's bring in david and mychal bell a with cue investors. david, what is your reaction what do you think it's telling us >> hi, kelly look i think the fed was right to take the action given the uncertainty. the market selling off is a reflection that between 2950 and 3,000 on the s&p, it's fair value m the correction is just fine the earnings outlook has been impacted by the situation in asia and now the european tourism industry is basically getting shut down for the spring so the market selling

intervention that we saw from the fed, we saw that coordination, the g7 central banks -- the bank of canada, the bank of japan, etc. ecb. but you are not looking at swaths --me of the the swaps lines to other parts of the world. what about china, emerging markets, the dollars that they need? clearly since the global financial crisis, there has been a significant growth in emerging markets. significant increase in dollars needed or dollars demanded. -- dollars remaining theme the only transactional currency, a huge amount of dollar-denominated debts in emerging market spirit some of these countries are likely to be struggling, some of the corporate's in these countries could potentially be struggling to get their hold on dollars. if we go back to the global financial crisis, the fed has commercial paper funding facility. that was announced in 2008. i thinkon to 2010, and that enabled liquidity of dollar throughout the world. they have not yet done anything like that. that does not mean to say that they will not, but it is reassuring to think something like that in the announcement yesterday.

i would expect the bank of canada this is the biggest shoe to drop but not necessarily the only shoe, carl >> steve, he was asked about credit issues, asked about impact on small, medium-sized businesses, sort of characterized it in an anecdotal beige bookie kind of way how important do they weigh that versus actual numbers once they start coming in? >> at this stage, that sort of anecdote is very important he must be hearing from different people about the possibility of bad outcomes here we had some of that in the cfo survey that we did earlier this week, if you remember, carl. some folks had seen it lready. some folks expected to see it. i think what the fed chairman thinks he's doing here is the appropriate preemptive action here, getting as far ahead as you can before the data come in and starts to, in his expectation, i think, begin to show the effects of this virus in the economic data it's not there yet it's in some of the anecdotes and there's more to come >> yeah, steve also sort of getting right at the question that's been getting debated on our air all morning, which is ho

bank of canadae with a 50 basis point cut. is bloomberg. ♪ ♪ you are watching bloomberg surveillance. viviana: we begin with u.s. national security officials wanting president donald trump to block a takeover of a semi conductor. bloomberg has worried -- bloomberg has learned they are worried the $8.7 billion deal will threaten the outcome. unit isving car reportedly valued at $30 billion according to the financial times. billion from outside investors. with u.s. federal aviation administration expected to test the 737 max in a few weeks. after two fatal crashes, the plane has been granted. the faa must approve new training for pilots. tom: thank you so much. i can do a one hour data check and 20 seconds. deteriorate and we have the same yield compression but not curve flattening, steepening, that is a huge distinction. at least from a market point of view, what do we have coming up later on here on bloomberg? at 12:30 p.m. in london, this is bloomberg. ♪ ♪ johnson, tom keene in new york. . let's talk about the virus, the numb

other g-7 central banks are yet to follow suit, though expectations for the central bank of canada, japan, and korea and furtherrowing to fall. scott meinhardt said u.s. equities could slump another 15% but a surprise come back for joe biden on super tuesday cease turn positive. speaking of the biden news, we are getting a breaking headline on the bloomberg terminal that joe biden has won the texas democratic presidential primary, state that was expected to show strong support for bernie sanders, has gone instead for joe biden according to the associated press. of super tuesday for joe biden. a contender who had almost been counted out after the initial caucuses, coming back in a big way after getting endorsements from amy klobuchar and pete buttigieg. matt, let's go from the united states politics to money management in the u.k. breaking news on the uk's largest manager of assets in the u.k., pretax profit missing estimate by a little bit. pounds, the estimate was 2.23 and the full-year operating profit, 2.13. they are confident they will deliver growth into the future. yountion this on

and the bank of england, l.b.a., bank of canada and central banks acting, going to be very difficultonly one to continue standing back. so i think if we talk about coordinated responses, you know, at least on semi level of coordination, then i think this week, we should expect to see some kind of conversation and maybe even action. anna: to what extent do financial conditions make a difference here? looking at a chart of u.s. financial conditions. really tightening. i mean, back to levels that we saw at the end of 2018 but really tightening and evident. this is having an impact on the ground in the united states right now. even if it isn't in the data and you wait for is quite backward looking. there was a platform on which the fed can act already perhaps. seema: yeah. absolutely. and i think what we also are seeing is now that markets expect the fed to act, they have no choice almost to act. and we've seen the last 18 months the fed held hostage by markets to deliver what they're asking for. but they do need to come in as you said to stop those liquidity conditions from continuing t

of course, prior to the fed, you have the rba cutting rates. the central banks in malaysia cutting rates as well. we're looking ahead wednesday to the bank of canadae the ecb, the bank of england later this month. there is intense pressure on those central banks to come up with some kind of action as well. whether that is rate cuts or additional measures, maybe targeted measures. the ecb is obviously slightly constrained with the delayed statement from the new ecb head, christine lagarde. some would say it is delayed in terms of her commentary. the ecb would be looking at their next meeting next week. there's is an expectation for the markets that you would see a cut of 10 basis points. they are already in negative territory, -0.5% for the benchmark. the other possibility for the european central bank is maybe they will look at targeted measures around longer-term loans, some of the corporate that have been impacted. the bank of england later this month. they have a little more wiggle room. the bank of japan is relatively constrained as well. their benchmark rate is already at -0.10 basis points. they may be looking at increasing their targets for

alix: td securities had an interesting stat yesterday, looking at the fed, the boe, and the bank of canada gdp in qe before they end. that number to me was really staggering. that?s the real hazard to how do we get back from something like that? the couldn't take back qe last time. if you look at where we were come up we got up to 20% of gdp in this country. it really is a question of how much outstanding debt you have in your country. we are going to have more. we are going to be well north of gdp in outstanding debt. so i guess i don't see a number like 20% as being that problematic. for the fed isue twofold. first of all, if you're going to start to buy assets of companies for thee direct loans corporate debt, unwinding that is going to have some .ssues the issue with unwinding qe you referred to is really an issue about somehow, even though we had $1 trillion in excess reserves, it still wasn't enough. a lot of what the fed is trying to do, as i read it with their treasury purchases, is really to fix what is going on in short-term financing markets. we just see these weird breakdowns i

banks across the world after these huge market falls we saw over the past week. there will be some welcoming of the fact that now central banks such as, you know, canada, the us, the japan and others have come together and tried to launch co—ordinated action. the question is, will this really work? such are the problems in terms of both demand and supply we are seeing across the world, a lot of central banks and governments almost look like they are running out of options here. indeed, because i heard jerome powell speaking just a moment ago ruling out negative interest rates which means that it leaves the federal reserve with very few other options later in the future. exactly, and we are of course, here in the uk where i am, yet to see the peak of the pandemic in this country, even though around the world we have china now getting back to some thing resembling normalcy. you have to wonder where else there is to go after such a dramatic move, even though donald trump has been pressing the fed of course to act sooner, you do wonder where else they can go from here. days after becoming the new epicentre of the coronavirus pandemic, europe has been altered beyond re

he talks about this in the letter saying he is proud to be tapped by the fed along with the bank of canadaso asked him to act as an advisor. overseeing three debt by in programs. buying programs. nk was also speaking to the fed. managingblackrock was $1.7 trillion. guess how much they are managing today? $7.4 trillion. pretty astonishing. matt: that is a heck of a lot of money. a be he met. emery hard earned joining us for -- annmarie hordern speaking from new york. another important opinion coming out of st. louis. james bullard says the u.s. can afford adding trillions of dollars in coronavirus relief debt and it will not hamper the country's ability to grow in the future. he speaks exclusively to bloomberg. >> i did want to see pandemic relief. i would not call it stimulus. i would call it pandemic relief. what i interpret the program trying to do is to stabilize incomes and businesses as we thisour way through investment in our national health in the next couple of months. , we do have at blog on this. if you read it carefully, you will see that there is a way to bind the unemployment

banks doing the same thing. so you are also looking at buying yields in australia, new zealand, canada, the u.k. rba in australia just cut rates a couple oflikely to again in april. there's rumors of an emergency cut in bank of england. this is going to be the continued theme, and we are going to move towards that zero interest rate policy. nela: i think nick just spelled out the fed playbook very well. the one thing i would add is that each cut becomes less effective. more effective here at home, but if you look at global central , so their effects are going to be even less than here at home -- global central banks, they are lower or negative, so their effects are going to be even less than here at home. there's a risk that we still don't have a good way of quantifying. alix: ultimately, it seems like other countries may have a better chance of fiscal stimulus, like germany, and we see italy interested. is that a better playbook for the u.s.? i think that is a better narrative overseas. we are building a body of other countries about how the virus moves through populations. public health concerns, and it is possible that as that progress

we know the bank of canada is going to make a decision tomorrow anyway. e disappointment because they let the communications get ahead of their communications. alix: isn't that what always happens? how's today any different? michael: it is definitely not the markets -- not what the markets were expecting, and they had to have known that. you lookichelle, as forward, does the market reaction put more pressure on the fed to react at its march meeting? michelle: i think that is the case. i am sure that the federal reserve and other central banks would like to wait and take action at their respective meetings. the question is whether or not markets will allow them to do so. when you look at the price action last week and what that potential he means in terms of generating even greater economic risk, i think it would be very difficult to see a repeat of that kind of move in financial ,arkets and not have a response that is indeed what ends up happening. alix: you had a note out overnight that said you are looking to a zero lower bound by midyear. you could see

vassili: i think the bank of canada put it well on friday with the additional emergency rate cut, sayinganada doesn't have just one shock from coronavirus. it has two shocks, from lower oil. if you look at the divergence between canadian commodity prices and, for example, rises of australia and new zealand, it is quite striking. there is this idiosyncratic element of just lower oil prices on the back of the opec/russia breakdown that might even be here long after the coronavirus subsides. i completely agree that in currencies like the canadian dollar, they are particularly vulnerable in this environment. alix: jeff currie had a really provocative note out on goldman sachs. one call was 92% of world gdp is in some form of shutdown or lockdown. that to me was really staggering. michael: that is what it leads to in the oil markets. they are predicting 22% decline in global demand, more than the united states produces, so it is not just canada that has a double shock. the u.s., we talked with brock kaplan last week, his district is going to get really hard. it is shutdowns in the midwest and

the fed joined the bank of canada, the bank of england, the european central bank, swiss national bankve central banks here working in coordination to cut interest rates, and i guess the market is viewing this as this is a very aggressive, in some cases emergency desperate move. i mean the federal reserve cannot go any lower. you are not going to see fed i don't think take rates into negative territory, which is where europe is, but i think what it indicates is that all of these bodies, whether it be fiscal stimulus coming out of the white house, the targeted leaf coming out of congress -- targeted relief coming out of congress friday night or the specific assistance for certain industries or monetary policies from the federal reserve, all of these bodies are trying to fight and stop an impending recession. i think that is what this is about. this is an emergency move to say all of this activity or lack of activity really is what you want to say of all of these closures, businesses, no flights, no economic activity will mean 0% growth in the first quarter, probably a contraction in the