but first economist mohamed a. el-erian the outlook despite the coronas virus. (woman) no matter what business you are in, digital transformation never stops. verizon keeps business ready for what's next. (man) we weave security into their business... (second man) virtualize their operations... (third man) and could even build ai into their customer experiences. we also keep them ready for the next big opportunity. like 5g. (woman) where machines could talk to each other and expertise could go anywhere. (woman) when it comes to digital transformation, verizon keeps business ready. ♪ ♪ ♪ ♪ everything your trip needs for everyone you love. expedia. ♪ ♪. jack: the markets rallied this week and impeachment prices falling and more. earlier i spoke to economist tran seven to get his take on all that. jack: mohamed the market can't seem to decide if it should worry about coronavirus or not. why the schizophrenia and shall be be worried? >> first a defense which market. if you are talking but the equity market, it doesn't care. it is striking how quickly we have come ba

. >> barron's roundtable sponsored by cute cute cute, this week meet economist mohamed a. el-erian weighs in on the wild ride impeachment politics and more. what that tesla stock rally tells us about the future of the electric car company in the industry. and why sustainable investment can and prove your investor. barron's roundtable starts now. being nine welcome to barron's roundtable with the sharpest minds need to get behind the headlines and prepare you for the week ahead. i am jack otter and will begin with what we think of the three most important things investors should be thinking about right now. stocks climbing back toward a record despite corona virus. in pencil week for shareholders ebay pressured to make changes and tesla pulling back a little bit after buying frenzy pre-what's behind these moves? my colleagues tran eight, bev goodwin, and carlton english. crazy politics and yet the market was up on the week even though friday was low dodgy. >> friday was a little tough, but out for the week, up for the month, up for the year. the market is doing what it does best is

jack: mohamed a. el-erian thank you so much for your insights we hope to speak with you soon.deas on what you can do right now to improve your portfolio. the first esg funds are booming we will t t t t t ♪ ♪ wherever we want to go, autosave your way there with chase. chase. make more of what's yours. i'm part of a community of problem solvers. we make ideas grow. from an everyday solution... to one that can take on a bigger challenge. from packaging tape... to tape that can bond materials to buildings... and planes. one idea can unlock a breadth of solutions. at 3m, we are solving problems that improve lives. one idea can unlock a breadth of solutions. our retirement plan with voya gives us confidence. we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. i'm good at my condo well planned, well invested, well protected. voya. be confident to and through retirement. wheneveryone is different.a, which is why xfinity mobile created a different kind of wireless network. one that saves you money by letting you

. >> barron's roundtable sponsored by cute cute cute, this week meet economist mohamed a. el-erian on the wild ride impeachment politics and more. what that tesla stock rally tells us about the future of the electric car company in the industry. and why sustainable investment can and prove your investor. barron's roundtable starts now. being nine welcome to barron's roundtable with the sharpest minds need to get behind the headlines and prepare you for the week ahead. i am

. >> barron's roundtable sponsored by cute cute cute, this week meet economist mohamed a. el-erianin on the wild ride impeachment politics and more. what that tesla stock rally tells us about the future of the electric car company in the industry. and why sustainable investment can and prove your investor. barron's roundtable starts now. being nine welcome to barron's roundtable with the sharpest minds need to get behind the headlines and prepare you for the week ahead. i am

a high conviction. we talked about mohamed el-erian saying, don't expect a quick china rebound from the virus.rase "cascading sudden stock dynamics." you could refer that to the tech sector, because the coronavirus epidemic could choke off the world's electronics and have ripple effects through the supply chain of unknown quantities. is that something you are factored into your conviction? does that conviction have to do with the low yields manus just referred to? benjamin: it is a risk, something you have to worry about. you can't ignore that idea. there is always a worry of how brought is that the stock. most of it has been focused in wuhan. but there are many foxconn factories not too far away from that area, for example. so that feeds into the supply chain issue. the company's were talking about at the top of the hour, they are starting to come back and they are starting to manufacturer again, so perhaps we shouldn't be overly pessimistic around that side of things. the other thing to think about is tech is not just about semiconductors. semiconductors are probably the area i like most at

turning to the hopes of a v-shaped recovery. mohammed el-erianaises some concerns. >> we have been conditioned to think of v's. has been containable, temporary, and reversible. this one i think will be different. those three conditions are not met by the coronavirus. priya misra, pe vishwanath tirupattur, and tony rodriguez are still with me. nota: the world economy was firing on all cylinders when we went into this. we were already week, supply chain for already constrained. european growth, we were flirting with recession. now we get this shock. is that enough to weaken things even further? i'm not calling for recession, but i struggle to see where certainty will come back. uncertainty remains high. we also have an election coming up in the u.s. the business, corporate sector that is dealing with declining profit margins, elevated uncertainty, i'm not sure lower interest rates help the corporate sector. you could certainly get some rebound. this v-shaped -- maybe it is u-shaped, maybe l. jonathan: let's talk about credit. credit spreads have th

a shot of tequila. david: that is what mohamed el-erian is working about -- worried about. 8. and this isancial goods and services. tom: what else did we learn? david: he is concerned that economists are following the markets. withso had ian bremmer on eurasia group who is concerned about where things are going between the u.s. and china. he thinks europe's superpower is regulation, that is what they do best. be, but ishat may that a good or bad thing? unclear when you are regulating big tech if that is a good or bad thing. david: he said they are good at regulation and big tech needs regulation but they do not have an industry. the u.s. and china have some industry but europe doesn't. if they will develop an industry, they will have to back off some of the regulation or they will stifle it for they get going. francine: did he weigh in on huawei? of areas where europe has not played. europe is stuck in the middle. david: when they meant to munich, republicans and were saying, we are serious about huawei. he thinks huawei is a serious threat and the united states is united th

mohamed el-erian had a four --d essay on this pandemic four-part essay on the presumed pandemic. he will be our guest at the 9:00 hour. stay with us. futures are at -52. this is bloomberg. ♪ francine: this is "bloomberg surveillance." tom and francine from london and new york as always, just trying to make sense of the markets. new cases of the virus keep appearing outside china. new zealand and is when you have reported their first infections, so has nigeria. the number of infected in south korea has gone over 2000. let's go to stephen engle in hong kong. seems like the narrative shifted on monday. there are a lot more infections around the world and china is stabilizing. is that right? stephen: that is what the data in china is telling us. now we are seeing reaction from regional governments as well as around the world. japan in the last hour, the northern prefecture of hokkaido announcing a state of emergency. they have had a few clusters of virus outbreaks there. yours truly was headed to hokkaido tomorrow. we were on the phone, trying to figure out whether i could even go no

a pretty big issue for our china sector. matt: the markets have slumped over the last few days but have generally been optimistic. everyone i have talked to except for mohamed el-eriano you expect it to play out? bill: i think it will take longer and push out into q3. i think the chinese economy is not going to fall back to 6%. i think it falls back to 5% because as it has become more of a consumer economy, it will be significantly impacted. as it has spilled over into the western world, the comments about the cdc and u.s. saying there will likely be an outbreak , it will change the behavior and i don't think it will cause a snapback in behavior. using half a point of global gdp and a point and a half off of china, but that goes to the negative, not the positive, as this unfolds. matt: will that change the way you invest or the way people invest with you? bill: i don't think it will have a long-term impact on the interest in private equity. we will ber a cycle, fine and china will be fine. i think near term, there will be some caution. one of the big questions for us now, will valuations in the private market begin to adjust to a correction in the public market and

coming up, we are bringing market analysis all morning deadly coronavirus fuels a major market sell-off mohamed el-erianike italy germany and france i will speak with dallas federal reserve president robert kaplan on economic cutback of this outbreak 8:30 a.m. eastern stay with us back in a i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424. ♪ yes i'm stuck in the middle with you, ♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's the most open and secure public cloud for business. it can manage all your apps and data from anywhere. so it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. without getting in your way. ♪ ♪ you'll remember where you were.ever. this day has never been closer. today, thanks to your help, the leukemia and lymphoma society is saving lives. lls funded research has led to nearly every blood cancer treatment available, and is now

do we really know what's going on >> i think that's a piece of the transparency it was mohamed el-eriansaid he heard some banks were pulling out from their lending facilities for hedge funds to be saved. that's the kind of thing where you find out what's really been going on in the economy. >> there's a million businesses that are going to go under if they don't get help soon >> no question the u.s. banks have much more capital and much more liquidity than they did in the way-back machine of 2008, but we don't have a perfect understanding of the interconnections and the domestic banking sector. if i'm half right that the chinese and asian economies are suffering from this first, that the european economies will suffer from it next, if we look to some of those financial institutions and some of those connections, there's still a great veil that is difficult for us to assess and what do markets do amid periods between fear and greed, they run this is where it's an opportunity for the official sector to try to pull back the curtain because in all likelihood, the truth is better than market

a live bookkeeper with intuit quickbooks. >>> welcome back joining us now on the selloff is mohammed he wiehe will el-erian treasury yields areu make of this sudden selloff, what do you think the cause is >> so i think that rather than look for a single cause, which will be hard to find, we have to understand the context and the context is a very technical driven market that has been increasingly decoupled from fundamentals and even in some cases valuations so the way up, it brushes off one traditional implement after the other, the most recent being the coronavirus. there is a massive momentum that is underpinned by a narrative, but every once in a while these markets hit sudden air pockets the real test is do we see a recurr recurrence of the buy the dip mentality. and so -- >> and that is a key point just given everything that we've seen playing out on a macro level, all the uncertainties around coronavirus in recent weeks as well, if you have been surprised at how resilient the markets have been. >> surprised, no, because we have been deeply conditioned to believe two things one is that every shock is containable, tempora

a really interesting indicator. bloombergs bill maloney joining us. coming up on the open, mohamed el-erian.ough day. the worst week for global stocks since the great financial crisis. the dax rolling over by 4%. look at the board and you can see the safe haven assets. gold is lighter. the two 10 spread continues to steepen. the rush to safety, the again otherwise thee, rush to the dollar. brent at 50, a world of pork from the corporate credit market as well as parts of the equity market. happy friday. this is bloomberg. ♪ jonathan: from new york city for our audience worldwide. i'm jonathan ferro. "the countdown to the open" starts right now. ♪ jonathan: coming up, equities heading for their worst week since 2008 as fears grip investors. does joe year treasury yields drop below 1% as central bankers continue to indicate little window to act. here is your friday morning price action. six day losing streak is about to become seven at the open. down 2% on the s&p 500. there is your bid into the bond market, down seven basis points on the 10 year. your yield down to 1.20. foreign-exchange with

we're bringing in moham mohamed el-erian you said after we saw the first coronavirus related pullback that people shouldn't buy that dip. why did you say that then and now we've had a second dip, a massive dip? do you start to think that we've overrun to the downside? >> thanks for having me. so first i said it because people were underestimating what i call the economic sudden stop. what happens when everything comes to a stop in certain parts of the world there is massive economic contagion that goes on people simply didn't understand that this is a dynamic in play and that things would get a lot worse before we turn a corner. now, we have phase two of this, which is not just an economic disruption, but a financial dislocation. and that will feed on itself for a while. so as much as there's value in certain names because the sell-off becomes very indiscriminate as we saw today, it's not yet safe in my opinion to get back into the market as a whole. you've got to let the economics and natural dynamics play out a little bit before the market is attractive enough for the sort of risk that's ahead >> would you be advising people to get out of the market >> well, it d

a key level today on the open. alix: unreal. we will leave it there. bill maloney joining us. squa on the terminal. withg up on "the opening" jonathan ferro, mohamed el-erianpside. on.aq futures holding up .5%. this is bloomberg. ♪ jonathan: from new york city for our audience worldwide. i'm jonathan ferro. "the countdown to the open" starts right now. ♪ jonathan: coming up, stocks bouncing back as china mulls more economic support. investors looking for clues on the fed's next move. sandersnners senator said to take the stage in nevada. here is your wednesday morning price action. positiveup, futures .33% in the bond market. toasury yields higher, up 1.57. of 1.08 atill south 1.0 794. let's begin with the big issue, the uncertainty in china taking a jackhammer to corporate outlooks. theircutting or scrapping guidance altogether with efforts to contain the virus weighing on the demand and supply side. you will hear any guests talk about a v-shaped recovery, of