joining me around the table is george rusnak, oksana aronov, gershon distenfeld. fed meeting is coming up in a couple weeks time. what do you expect to see from the governing council of the ecb? oksana: an entire 10-basis point cut is coming. that is what they will put on the table. i was joking before we went on the air. honey, revoked the cruise, said no one ever on the back of a central bank cut. what we really need is facilities need to be put in place to deal with potentially escalating number of bad loans. are they equipped to do it, prepared to do it? has christine lagarde had the opportunity to do the review she needed to do to think about all the different moving parts with our counsel? not likely. george: she is in a tough spot. the market expects her to cut by 10 basis points. to your point, i don't think it will help much. beyond that, do you extend qe, make that even bigger? jonathan: is there a circuit breaker for you, gershon? something a policy maker could do that would get you to sit up and say game changer? gershon: we were talking before, some l

jonathan: back with us are george rusnak, oksana aronov, gershon distenfeld.is your moment, oksana. you said it was like christmas morning. oksana: very early in day. the presents are not quite out yet. if you think about high-yield, it is just inching its way into the 500 spread. if you take energy out of that, which is where most of the stress is, high-yield is still around 5%. 50% of the high-yield market is bb, and that is helped by the duration play. they have held up ok. high-yield went negative on the year just yesterday. down barely half a percent. that is the market entirely if you take energy out of that. you have to wait. probably for another couple hundred basis points. energy will lead the default cycle. for them, no matter what the fed does, it is not a liquidity problem but a solvency problem. $47 oil will not cut it. we are going to go through another cycle there. high-yield will be affected and there will be an opportunity. jonathan: it is christmas day but i have to wait another 200 basis points? that sounds like july. oksana: depends on how

special thanks to george rusnak, oksana aronov, gershon distenfeld.m new york city, that is it for us. see you next friday, 1:00 p.m. new york time. this was "bloomberg real yield." this is bloomberg tv. ♪ david: facing the unknown of the coronavirus and bringing the presidential race into focus. this is "bloomberg wall street week." i'm david westin. welcome back. we will sit down with brian nick. >> what i am more concerned about is we have not seen a capitulation on earnings expectations. david: nuveen chief investment strategist. >> the greatest concern is the u.s. seems to be alone as a growth engine that has not stalled as quickly as many other regions. david: dambisa moyo, global economist and author of "edge of chaos." and our special guest, larry summers, former u.s. treasury secretary. ♪

alix: george rusnak and rick bensignor, stick with me.n all the news we got from the fed. it is tremendous headlines coming here, really historic. the fed is announcing very extensive measures to support the economy. they are doing open-ended treasury mortgage-backed security buying and anything else that is needed. they are extending the money market lending facility. to be buyingg secondary corporate credit. they are also going to be launching a main street facility -- a lending main street facility to help the main street businesses. atm for offering the that. it is a lot. willthis week alone, we have $600 billion of qed coming just this week alone. it is the kitchen sink times infinity. s&p futures were down by about 3% going into this news. we are now up i almost 3%. you are also seeing monster buying in the bond market, yields down by 14 basis points. 102.e just under volatility coming down. turn inton seeing wti positive territory. it is really the long end of the treasury curve seeing yields come down the most as the fed just brin